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...

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