Savient's Unsecured Creditors Blast Cash-Collateral Motion

Law360, Wilmington (November 25, 2013, 9:37 PM ET) -- Unsecured creditors blasted Savient Pharmaceuticals Inc.'s plan to fund its stay in Chapter 11, saying its proposed cash-collateral motion provides secured bondholders with large and unnecessary payments but brings the drugmaker little in return.

The official committee of unsecured creditors contends the motion should be rejected because senior secured noteholders are demanding far too much in exchange for simply allowing Savient to use their cash collateral during the case.

Senior noteholders are not providing Savient with any new money, but are “requesting inappropriate concessions as well...
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