GMX Accused Of Hijacking Bankruptcy With $50M Loan

Law360, New York (April 22, 2013, 3:41 PM EDT) -- The creditors’ committee for bankrupt oil and gas producer GMX Resources Inc. objected Friday to the company’s request for $50 million in post-petition financing, calling the loan terms an attempt to “hijack the bankruptcy process.”

In a scathing filing in Oklahoma bankruptcy court, the committee said the financing request was an asset grab by company insiders that would wipe out GMX’s other debt obligations, and was part of a years-long strategy that would ultimately stymie the creditor committee’s role in the proceedings.

“The strategy is to...
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