Bankrupt Paper Recycler Wins Cash Collateral Lifeline

Law360, New York (August 15, 2011, 7:26 PM EDT) -- Michigan-based paper recycler Manistique Papers Inc. won access to a short-term lifeline of cash collateral Monday as its primary bank lender, RBS Citizens NA, said it would seek to convert the Delaware bankruptcy case to a Chapter 7 liquidation.

U.S. Bankruptcy Judge Kevin J. Carey signed off on an order allowing the company to use RBS’ collateral on an emergency basis, keeping the paper mill afloat until Aug. 26. MPI filed for Chapter 11 protection on Friday, one week after RBS refused to extend additional credit...
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