Creditors Question Need For Architectural Firm's Ch. 11 Loan

By Rick Archer (May 23, 2022, 8:52 PM EDT) -- The unsecured creditors of architectural firm EYP Group on Monday asked a Delaware bankruptcy judge to examine whether the company needs to draw on the rest of its $5 million in Chapter 11 financing, particularly since it is coming from EYP's prospective buyer.

In its motion, the unsecured creditors' committee said EYP should be required to justify why it should be allowed to draw on the rest of the debtor-in-possession financing, since most of the funds appear to be earmarked for professional fees unlikely to come due before the loan is paid off.

"Such scrutiny is particularly warranted, moreover, where the...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!