Lenders Warn Of International Aluminum Plan 'Wipeout'

Law360, New York (January 7, 2010, 1:37 PM EST) -- Mezzanine lenders are claiming that the prepackaged reorganization plan filed by aluminum products manufacturer International Aluminum Corp. is an attempt to “wipe out” the company's largest unsecured creditors.

In an objection to preliminary approval of the disclosure statement filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware, the mezzanine lenders said that International Aluminum's “fast-track” reorganization plan was illegal.

The plan constitutes a “sweetheart deal” among the company's management, its prepetition lenders and the private equity fund GenStar Capital Partners IV LP, the...
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