Lenders Object To Nellson's Extension Bid

Law360, New York (January 24, 2007, 12:00 AM EST) -- The informal committee of first-lien lenders in the Nellson Nutraceutical Inc. bankruptcy has asked the court to deny the company’s request for an exclusivity extension, saying the diet-food maker has compromised its “ability to function as an honest broker” because of a settlement agreement with a controlling shareholder and another lender.

The committee, which filed its motion Tuesday in the U.S. Bankruptcy Court for the District of Delaware, argues that an exclusivity extension would unfairly shift the balance of power towards the second-lien lenders. The company...
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