NewPage Creditors Seek Court Approval To Sue LBO Lenders

Law360, Wilmington (May 7, 2012, 9:16 PM EDT) -- NewPage Corp.’s unsecured creditors asked for court permission Friday to sue the lenders that financed the bankrupt company’s 2007 leveraged buyout of Stora Enso North America Inc., claiming the deal left the paper manufacturer insolvent.

In a motion filed in Delaware bankruptcy court, the official committee of unsecured creditors requested standing to pursue fraudulent transfer claims on behalf of NewPage against the company’s first- and second-lien lenders. The LBO heaped $2 billion of debt onto NewPage without providing any value to the debtors, according to the...
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