Lenders Balk At Ch. 11 Sale For Auto Parts Co. MSD

Law360, Wilmington (September 9, 2013, 6:57 PM EDT) -- A group of senior secured creditors for bankrupt high-performance auto parts maker MSD Performance Inc. said Monday that they would oppose a going-concern sale and might seek the Delaware bankruptcy court's permission to submit their own debt reorganization plan for the firm.

During MSD Performance's first-day hearing in Wilmington, Del., an attorney for a group of secured lenders led by Madison Capital Funding LLC said a bankruptcy sale would heap a huge tax burden onto the estate. The lenders accused Z Capital Partners LLC, which had...
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