Rotech's $30M DIP Loan OK'd Over Shareholders' Objections

Law360, Wilmington (May 14, 2013, 11:00 PM EDT) -- Struggling medical equipment maker Rotech Healthcare Inc. won final approval for its $30 million debtor-in-possession package Tuesday, as a Delaware bankruptcy judge agreed to sign off on it despite strenuous opposition from Rotech's shareholders committee.

The committee of equity security holders raised a host of the challenges to the proposed DIP financing, questioning Rotech's need for additional funds and asserting that the package amounted to an under-the-table reorganization plan. But U.S. Bankruptcy Judge Peter J. Walsh overruled the objections and gave the facility his blessing....
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