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Cosi Creditors Say Proposed Auction Is Tilted To Lenders

Law360, New York (October 20, 2016, 4:48 PM EDT) -- Unsecured creditors of Cosi Inc. are challenging the company’s $4.1 million bankruptcy loan, saying Wednesday in a Massachusetts court filing that the financing carries unreasonably tight deadlines that will result in a “truncated” auction of the business that favors the restaurant chain’s secured lenders.

The official committee of unsecured creditors filed an objection opposing the bankruptcy court granting final approval to debtor-in-possession financing Cosi has lined up. The filing comes weeks after the court gave interim approval to the Chapter 11 financing, which authorized Cosi to...
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