J.L. French Creditors Move To Investigate '04 Plan

Law360, New York (April 19, 2006, 12:00 AM EDT) -- Seeking evidence of possible wrongdoing, creditors of J.L. French Automotive Castings Inc. are requesting court approval to investigate whether or not the bankrupt auto parts maker and its lenders properly conducted an out-of-court reorganization that preceded its insolvency.

The Wisconsin-based company, which entered Chapter 11 bankruptcy protection on Feb. 10, conducted in August 2004 the out-of-court restructuring in which lenders offered J.L. French new terms on its loans in order to boost its struggling finances.

Despite the terms of the 2004 plan, J.L. French defaulted on...
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