Paper Co. NewPage Wins $600M DIP Loan

Law360, Wilmington (October 4, 2011, 7:23 PM EDT) -- A Delaware bankruptcy judge on Tuesday gave final approval to a $600 million debtor-in-possession loan for private equity firm-owned paper company NewPage Corp., despite objections from unsecured creditors that the order improperly hands additional collateral to secured lenders.

The official committee of unsecured creditors had objected to the relief, saying that — with a debtor that is cash flow positive and a DIP loan that does not prime their liens — the lenders face little risk of diminution in the value of their collateral and should...
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