US Trustee Slams Global Settlement In Highway Tech Ch. 11
By Matt Chiappardi
Law360, Wilmington (August 5, 2013, 8:59 PM EDT) -- The U.S. Trustee's Office slammed a proposed global settlement among the creditors committee and other lenders in the Highway Technologies Inc. Chapter 11 case late Friday, arguing that it turns the Bankruptcy Code “on its head” by allowing unsecured creditors to get their money before more senior claimants are paid in full.
U.S. Trustee Roberta DeAngelis contended that the proposed settlement — which the official committee of unsecured creditors said resolves its concerns about the defunct traffic safety firm's $3 million post-petition loan and its desire...