Rotech Equity Holders Out To Ax $57M 'Make-Whole' Claim

Law360, Wilmington (August 12, 2013, 11:09 PM EDT) -- Rotech Healthcare Inc. shareholders asked a Delaware bankruptcy judge Monday to nix a $57 million “make-whole” claim asserted by creditors of the medical device supplier, saying the premium must be disallowed because the amount is patently unreasonable.

Second-lien noteholders are seeking recompense for Rotech's having repaid its debt obligations ahead of schedule, but the provision is unenforceable since there is no correlation between the money the lenders lost out on and the sum they are asking for, according to a motion filed by the official committee...
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