Creditors Protest White Energy's Collateral Plan

Law360, New York (June 3, 2009, 12:00 AM EDT) -- The official committee of unsecured creditors has protested White Energy Inc.'s intended use of cash collateral, arguing that the ethanol producer is unfairly placing some lenders' interests above all others.

On Tuesday, the unsecured creditors filed a formal objection in the U.S. Bankruptcy Court for the District of Delaware to White Energy's motion to use cash collateral, arguing that it favors the prepetition lenders too much.

The committee contends that White Energy's actions so far suggest that it is catering exclusively to the prepetition lenders, which...
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