BoNY Objects To Wellman Plan Over Collateral Dispute

Law360, New York (July 23, 2008, 12:00 AM EDT) -- The Chapter 11 reorganization plan and disclosure statement that Wellman Inc. filed last month has come under fire from Bank of New York NA, the polyester manufacturer's first-lien lender, over its valuation of the collateral for the bank's $185 million claim.

BoNY objected to the disclosure statement Tuesday in the U.S. Bankruptcy Court for the Southern District of New York, characterizing the information on its loan as “inaccurate and misleading.” A hearing on the statement is scheduled for next Monday.

Jonathan Henes of Kirkland & Ellis...
To view the full article, register now.