Creditors Fight Chem Rx's Asset Sale Plans

Law360, New York (October 28, 2010, 1:07 PM EDT) -- Unsecured creditors of Chem Rx Corp. are lashing out at the asset sale procedures laid out in the company's restructuring plan, arguing that the provisions would unfairly allocate all proceeds to first-lien lenders even though certain of their claims have come under attack for their validity.

The official committee of unsecured creditors said in a filing Wednesday in the U.S. Bankruptcy Court for the District of Delaware that while it isn't opposed to the debtors' proposed sale of their businesses, it objects to a condition to...
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