J.L. French Creditors Rip Into G.E. Over Default Interest

Law360, New York (May 23, 2006, 12:00 AM EDT) -- Creditors of J.L. French Automotive Castings Inc. have targeted General Electric Capital Corp. in a lawsuit, arguing that the first-lien lenders are already on deck for a full recovery and should not also collect default interest payments.

The creditors committee lodged a complaint in U.S. Bankruptcy Court for the District of Delaware in Wilmington against G.E. on Friday, and requested the bankruptcy judge scrap the interest payments, which have been accruing since before J.L. French filed for bankruptcy protection in February.

The creditors claimed that “oversecured”...
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