Ethanol Plant Lenders Decry Bondholders' Distribution Hopes

Law360, New York (September 17, 2013, 5:35 PM ET) -- OppenheimerFunds Inc., which bought bonds in a now-bankrupt Pennsylvania ethanol plant, can't sue the project's lenders over debt repayment priority on a $200 million financing arrangement just because it didn't do its own homework, the lenders' attorneys told a New York state judge Tuesday.

OppenheimerFunds bought $65 million in bonds on the project, while a group of six lenders provided the rest of money in more-senior financing. OppenheimerFunds says that since the Clearfield, Penn., plant's operator, Bionol Clearfield LLC, has gone bankrupt, any distributions should be...
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