Grubb & Ellis Creditors Challenge DIP Financing Terms

Law360, New York (March 13, 2012, 11:17 PM EDT) -- Grubb & Ellis Co.’s unsecured creditors objected Thursday to the terms of the commercial real estate services provider’s planned debtor-in-possession financing agreement with BGC Partners Inc., saying the deal favors BGC over any other potential bidders in the proposed Grubb & Ellis sale.

In an objection filed in New York bankruptcy court, the unsecured creditors committee called certain provisions in the interim DIP order “unacceptable” and recommended modifications to terms that the creditors say unfairly favor stalking-horse bidder BGC.

In particular, the creditors object to a...
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