Sherwin Alumina filed with the U.S. Bankruptcy Court a motion for entry of an order reconsidering and modifying the Court’s consent order approving a stipulation amending Noranda Aluminum’s final D.I.P. order.
The motion explains, “Sherwin was entitled to notice of the DIP Amendment Order because it materially impairs Sherwin’s rights. In particular, the DIP Amendment Order may reduce NBL’s assets and thus impair the recoveries of NBL’s creditors. Furthermore, subsequent to entry of the DIP Amendment Order, NBL’s counsel confirmed that the provision at issue in the DIP Amendment Order was added to the order at the insistence of Debtors’ secured lenders, even though NBL is not one of the obligors under the Debtors’ prepetition credit facility and NBL’s obligations under the Debtors’ postpetition credit facility were satisfied in full when the sale of the Downstream Business closed in August 2016 and NBL repaid the funds it had borrowed.”
The motion continues, “There is thus no justification for impairing NBL’s unencumbered assets as part of the DIP Amendment Order. At the very least, Sherwin, as the largest unsecured creditor of NBL, should have received more than 97 minutes’ notice and opportunity to respond to a motion that sought to do so. Accordingly, Sherwin respectfully submits that the Court should vacate paragraph 14 of the DIP Amendment Order.”
The Court scheduled an October 6, 2016 hearing to consider the reconsideration motion, with objections due by September 29, 2016. Read more Noranda bankruptcy news.
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