Creditors Slam Recovery Cap In US Shipping Plan

Law360, New York (September 28, 2009, 1:17 PM EDT) -- The unsecured creditors of bankrupt petroleum tanker firm U.S. Shipping Partners LP have objected to its proposed restructuring plan, calling it “unfairly discriminating” because it limits recovery for all of the unsecured creditors to $100,000 if they do not approve it.

In a filing Sept. 25 in the U.S. Bankruptcy Court for the Southern District of New York, the unsecured creditors noted that the $100,000 limit represented only a 1.4 percent to 2 percent recovery of the $5 to $7 million in estimated outstanding debt to...
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