Freedom Made Shady JPMorgan Fees Deal: Creditors

Law360, New York (October 13, 2009, 4:02 PM EDT) -- Freedom Communications Holdings Inc. has drawn fire from its unsecured creditors, which claim the bankrupt news publisher entered a shady deal to pay “unprecedented” fees to JPMorgan Chase Bank NA.

In a motion filed Monday in the U.S. Bankruptcy Court for the District of Delaware, the official committee of unsecured creditors accused the publisher of paying JPMorgan undisclosed post-petition fees in connection with JPMorgan's consent for the use of its cash collateral.

The Irving, Calif.-based publisher owes JPMorgan about $770 million, the vast majority of its...
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