MagnaChip, Lenders Shun Creditors Ch. 11 Plan

Law360, New York (August 28, 2009, 6:23 PM EDT) -- MagnaChip Semiconductor LLC and the first-lien lenders at the heart of the debtor’s Chapter 11 liquidation plan have repudiated the creditors’ competing proposal as wishy-washy and unconfirmable.

In separate filings Thursday in the U.S. Bankruptcy Court for the District of Delaware, MagnaChip and UBS AG, the first-lien agent, came out against a recent reorganization plan hatched by the official committee of unsecured creditors that seeks to derail the planned sale of the debtors to a group of Korean investors.

The first-lien lenders, slated to recover $95...
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