Creditors Take Aim At Driller Southland Royalty's $70M DIP
Law360 (February 20, 2020, 3:09 PM EST) -- Unsecured creditors told the Delaware bankruptcy court late Wednesday that oil and gas driller Southland Royalty Company LLC's $70 million post-petition financing is unfairly set up to benefit secured prepetition lenders over other creditors.
In an objection filed with U.S. Bankruptcy Judge Karen B. Owens, the official committee of unsecured creditors asserts that an order that would finalize the debtor-in-possession financing should be denied unless changes are made to address the committee’s concerns.
“The DIP facility as currently constructed serves exclusively to improve the position of the prepetition [reserve-based lending] secured parties and eliminate any impediments to their reaping the entire...
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