NewPage Creditors Seek Probe Of $25M Transfer

Law360, Wilmington (November 9, 2011, 5:58 PM EST) -- NewPage Corp.'s unsecured creditors committee lobbied a bankruptcy judge on Wednesday for permission to investigate a $25 million transfer made to a Canadian subsidiary on the eve of its Chapter 11 filing, saying the transaction was designed to avoid court oversight and to benefit insiders.

Days before filing for court protection in September, the troubled paper company transferred the money into escrow for Canadian affiliate NewPage Port Hawkesbury to fund its own insolvency proceedings in Canada, according to documents filed in Delaware bankruptcy court. Styled as...
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