Creditors Say Cynergy Sale Plan Chills Competition

Law360, New York (September 15, 2009, 1:55 PM EDT) -- Arguing that the structure of the sale discourages competitive bidding, Cynergy Data LLC's creditors have objected to the bankrupt credit card processor's plan to sell its assets to investment firm ComVest Group — raising the ire of the debtor, which claims the proposal is fair and has been crafted through “painful” negotiations.

The official committee of unsecured creditors in the Cynergy case filed an objection Monday in the U.S. Bankruptcy Court for the District of Delaware, criticizing elements of the sale proposal, including a nearly $2.2...
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