Exide Bondholders Contend Ch. 11 Plan Unfair, Unworkable
Law360, Wilmington (December 18, 2014, 8:16 PM EST) -- Two senior bondholders of Exide Technologies Inc. took issue with the battery maker's disclosure statement Thursday, saying it supports an unconfirmable Chapter 11 plan that improperly favors certain creditors.
Frank Smith and Michael Nelson, who hold $4 million of Exide's senior notes, said the disclosure statement must be rejected because the underlying Chapter 11 plan discriminates between members of the senior noteholder class, providing so-called eligible noteholders a better payout than retail noteholders such as themselves would receive.
The proposed plan runs afoul of the Bankruptcy Code by offering eligible noteholders “extremely valuable recoveries” that are not available to retail noteholders,...
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