Investment Fund Balks At AbitibiBowater DIP Request

Law360 (May 28, 2009, 12:00 AM EDT) -- Aurelius Capital Management LP, an unsecured creditor of an affiliate of bankrupt newsprint company AbitibiBowater Inc., has objected to the company's debtor-in-possession financing request, saying it provides unneeded funds and lien-holder protections.

The investment fund filed its objection Thursday in the U.S. Bankruptcy Court for the District of Delaware, asserting that the requests for as much as $600 million in DIP financing as well as use of cash collateral and continued use of cash management systems should not be approved without modifications.

So far, the Montreal-based...
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