Creditors Attack DeCode Genetics DIP Financing

Law360, New York (December 9, 2009, 4:36 PM EST) -- Creditors are blasting deCode Genetics Inc.’s debtor-in-possession financing agreement with stalking horse bidder Saga Investments LLC, alleging that the agreement is self-serving and attempts to block the unsecured creditors from involvement by limiting their professional compensation allowance.

The official committee of unsecured creditors filed an objection to the debtor’s plea for final authorization of its DIP financing agreement on Tuesday in the U.S. Bankruptcy Court for the District of Delaware, urging the court not to approve it without significant revisions.

The creditors claim that Saga structured...
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