Creditors Seek To Block Credit Bid For Radnor

Law360, New York (October 19, 2006, 12:00 AM EDT) -- Calling the process “fundamentally unfair,” creditors for foam cup maker Radnor Holdings Corp. have asked a bankruptcy judge to stop a private investment firm's long-anticipated credit bid for the company’s assets at auction.

The creditors have also sought permission to sue the private equity firm, Tennenbaum Capital Partners LLC, on behalf of Radnor for allegedly breaching its fiduciary duties of loyalty to the company's controlling shareholder and board members.

Tennenbaum received court permission in August to put $122.5 million that Radnor owed the firm toward a...
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