NewPage Aims To Block Creditor Suit Over Purchase Of Rival

Law360, Wilmington (June 12, 2012, 7:02 PM EDT) -- Private-equity-owned NewPage Corp. asked a Delaware bankruptcy judge on Tuesday to bar its unsecured creditors from suing over the company’s 2007 leveraged buyout of a rival paper manufacturer, calling the proposed lawsuit “unnecessary and wasteful.”

The official committee of unsecured creditors in the bankruptcy has asked the court for standing to pursue fraudulent transfer claims on behalf of NewPage against secured lenders that financed the company’s $1.7 billion buyout of Stora Enso North America Inc., claiming the deal left NewPage insolvent.

But the committee’s theory ignores...
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