Creditors Lose Battle To Dilute EBG Lender Protections

Law360, New York (September 20, 2010, 7:04 PM EDT) -- A judge overruled unsecured creditors' objections Monday to bankrupt Boston power company EBG Holdings LLC's deal with secured lenders to use cash collateral, noting the unsecured creditors have a tough road ahead of them in the case.

Judge Shelley C. Chapman largely rejected the official committee of unsecured creditors' concerns during a hearing in the U.S. Bankruptcy Court for the Southern District of New York, indicating she would give final approval to the cash collateral bid after wording changes are worked out.

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