Rotech Equity Holders Slam Ch. 11 Plan

Law360, Wilmington (August 08, 2013, 10:15 PM ET) -- Equity holders of Rotech Healthcare Inc. tore into the medical equipment provider's Chapter 11 plan Thursday, saying the proposed reorganization discriminates against shareholders and was not developed in good faith.

Filed in Delaware bankruptcy court by the official committee of equity security holders, the objection claims shareholders are being squeezed out under the plan being pushed by, and for the benefit of, Rotech's second-lien noteholders.

“Indeed, the plan is nothing more than the implementation of the second-lien noteholders' demands upon the debtors that equity be foreclosed...
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