Creditors Object To Pappas DIP Proposal

Law360, New York (July 31, 2008, 12:00 AM EDT) -- Creditors of bankrupt Pappas Telecasting Inc. have objected to the television station owner’s plan to receive post-petition financing from prepetition secured lenders.

In an objection filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware, the official committee for PTI’s unsecured creditors said the proposed debtor-in-possession financing was “overly expensive and overly aggressive so as to limit the very sale process it is arguably designed to support.”

“The DIP credit agreement appears to provide an overreaching mechanism designed solely to pay the proposed DIP...
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