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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.