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Pliant's Creditors Challenge Blanketing Lien Claims

Law360 (June 4, 2009, 12:00 AM EDT) -- Left virtually empty-handed under Pliant Corp.’s proposed plan of reorganization, the official committee of unsecured creditors has launched an adversary proceeding against the major lenders, including Merrill Lynch Bank USA and Wilmington Trust Co., to recoup a greater portion of the plastic film manufacturer's assets.

On Wednesday, the committee filed the adversary suit in the U.S. Bankruptcy Court for the District of Delaware seeking to void and recover liens granted by Pliant to the prepetition lenders as well as the first- and second-lien holders.

While the...
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