Trustee Slams $25M Bid For Bankrupt Electric Car Co. Unit

Law360, Wilmington (June 04, 2013, 10:17 PM ET) -- The U.S. trustee objected Monday to the planned bankruptcy sale of a unit of electric-car maker Coda Holdings Inc. to lenders led by private equity firm Fortress Investment Group LLC, saying the $25 million stalking horse deal wastes assets that would otherwise benefit the debtors' estate.

The sale motion should be rejected, U.S. Trustee Roberta A. DeAngelis said, because the stalking horse deal waives or cedes millions of dollars in avoidance actions and brings in nothing for potentially valuable intellectual property, according to an objection filed...
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