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Creditor Protests Abitibi Bid For $206M In DIP Cash

Law360 (May 14, 2009, 12:00 AM EDT) -- Applied Industrial Technologies Inc. has objected to bankrupt AbitibiBowater Inc.'s move for $206 million in debtor-in-possession financing from two financial firms, saying the deal would not protect the industrial supplier's claims on inventory it consigned to the newsprint giant.

AIT filed an objection in the U.S. Bankruptcy Court for the District of Delaware on Wednesday seeking to carve out a portion of the DIP funds to protect more than $947,600 in goods it handed over to AbitibiBowater.

The supplier's objection centers on certain industrial equipment AIT...
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