Bank, Fund Object To Marcal's Disclosure Statement

Law360, New York (July 23, 2007, 12:00 AM EDT) -- Bankrupt Paper Company Marcal Paper Mills Inc. on Friday was hit with two fresh objections to its disclosure statement, one filed by US Bank and one by American Capital Strategies Ltd and American Capital Equity I, LLC.

ACAS, a minority shareholder, argued in its objection that Marcal's disclosure statement and reorganization plan should not be approved because it lacks adequate information for stakeholders and unfairly favors the Marcalus family, who are the majority shareholders.

“Unfortunately, this Chapter 11 case is a classic example of insider majority...
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