ProtoStar Satellite Asset Distribution Challenged

Law360, New York (November 24, 2009, 4:09 PM EST) -- Unsecured creditors of bankrupt ProtoStar Ltd. are looking to block company lenders from getting priority in the distribution of proceeds from a $210 million auctioned-off satellite.

The official committee for unsecured creditors filed a motion Monday in the U.S. Bankruptcy Court for the District of Delaware objecting to the debtors' request to distribute sale proceeds of the ProtoStar I satellite to the lenders as part of a debtors-in-possession agreement.

The committee opened an adversary proceeding against the lenders, which include The Bank of New York Mellon...
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