Nebraska Book Creditors Balk At Ch. 11 Plan Pact

Law360, Wilmington (March 20, 2012, 4:33 PM EDT) -- Nebraska Book Co.'s junior creditors on Monday cried foul at a pact the troubled bookstore chain made with senior bondholders, saying the agreement locks the company into a “deeply flawed” Chapter 11 plan.

Both the official committee of unsecured creditors and an ad hoc group of junior noteholders lodged objections asking the Delaware bankruptcy court to reject the so-called plan support agreement, which Nebraska Book struck with parties holding 46 percent of its senior notes.

After failing to secure $250 million of exit financing underpinning a...
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