Simplexity Rips Terms Of Bankruptcy Loan From Fifth Third

Law360, Wilmington (April 08, 2014, 5:57 PM ET) -- Bankrupt private-equity owned mobile phone activator Simplexity LLC said Tuesday that it took issue with terms of debtor-in-possession financing extended by Fifth Third Bank, leaving in limbo how the debtor will fund its planned $10 million stalking horse sale to Wal-Mart Stores Inc.

At a hearing in Wilmington, Simplexity attorney Robert S. Brady of Young Conaway Stargatt & Taylor LLP described the terms of the loan, which was to provide up to $1.1 million in post-petition financing, as a “Trojan Horse,” with several provisions he argued...
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