Creditors Oppose Stalking Horse Bid For Marcal

Law360, New York (November 16, 2007, 12:00 AM EST) -- Unsecured creditors in Marcal Paper Mills Inc.’s bankruptcy case have objected to a $121.6 million offer to purchase the recycled paper manufacturer from a group of second-lien lenders led by NexBank SSB.

The committee of unsecured creditors warned the U.S. Bankruptcy Court for the District of New Jersey on Thursday that if Marcal accepted the proposed stalking horse bid, it would leave Marcal a shell corporation with numerous liabilities and few assets.

“It appears the proposed sale to NexBank will leave very little, if any, cash...
To view the full article, register now.