Creditor, Others Challenge 'Pink Slime' Co. AFA's Settlement

Law360, Wilmington (October 2, 2012, 10:47 PM EDT) -- AFA Foods Inc., the meat processor driven into bankruptcy by consumer backlash over “pink slime” beef filler, received negative feedback Tuesday in the form of two objections to its global settlement to divvy up the $70 million brought in from auctioning off its assets.

Filed in Delaware bankruptcy court Sept. 18, the settlement claimed to resolve disputes among second-lien lenders, but one of them — American Capital Ltd. — took issue, calling the proposal a classic “sub rosa” plan, a sentiment shared by a class action...
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