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Creditors Contest Buffets' $385M DIP Financing

Law360 (February 15, 2008, 12:00 AM EST) -- Unsecured creditors of bankrupt restaurant chain Buffets Inc. are fighting the company’s bid to secure $385 million in debtor-in-possession financing, claiming the terms proposed by Buffets are unfair and inappropriate.

In a preliminary objection filed Wednesday, Buffets' official committee of unsecured creditors claimed the structure of the proposed DIP loan "is solely for the benefit of the lenders." They also asked the U.S. Bankruptcy Court for the District of Delaware for permission to file a more in-depth version of their objection under seal.

Buffets, which filed...
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