Flying J Creditors Balk At Terms Of $10M DIP Loan

Law360, New York (February 24, 2009, 12:00 AM EST) -- The creditors committee of bankrupt oil company Flying J Inc. has objected to the debtors' recent request to access up to $10 million in debtor-in-possession financing, arguing that the terms of the deal reflect too much high-risk borrowing.

In a preliminary objection filed Monday in the U.S. Bankruptcy Court for the District of Delaware, the unsecured creditors committee said that the loan, which the debtors claim will facilitate the company's sale of more than 900,000 barrels of “winter mix” fuel that must be unloaded by April,...
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