Noteholders Thrash EnviroSolutions Ch. 11 Plan

Law360, New York (June 17, 2010, 3:16 PM EDT) -- Creditors have attacked EnviroSolutions Holdings Inc.'s prepackaged Chapter 11 plan and vilified the prepetition lenders for pushing a plan that allegedly strong-arms support from neglected stakeholders and overcompensates the lenders.

On Wednesday the ad hoc committee of second-lien noteholders tore into the plan as a case of corporate pillaging and urged Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York to prevent the lenders from getting more through the EnviroSolutions reorganization than they are owed.

Slated to receive 100...
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