ING, Others Sue Ailing Freescale Over $1B In Loans

Law360, New York (March 27, 2009, 12:00 AM EDT) -- As Freescale Semiconductor Inc. swings close to bankruptcy, a group of secured creditors including affiliates of ING, Babson Capital Management LLC and Denali Capital LLC have filed suit alleging the chip maker has diluted the value of their holdings by refinancing about $1 billion in lower-tier bonds into higher-priority term loans.

The plaintiffs, which include more than 30 investment funds, filed the lawsuit Tuesday in the Supreme Court of the State of New York, County of New York, alleging that Freescale breached its credit agreements with...
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