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GST Pushes To Halt Unsecured Creditors' Lien Challenge

Law360, Wilmington (January 12, 2018, 4:53 PM EST) -- GST AutoLeather Inc. and its top lender pushed the Delaware bankruptcy court late Thursday to shut down unsecured creditors’ bid to challenge senior liens, arguing that such a fight would only disrupt the auto upholstery supplier’s Chapter 11 case for a “leverage ploy” in recovery negotiations.

The debtor and Royal Bank of Canada, agent for roughly $140 million in first-lien prepetition debt, argued that the official committee of unsecured creditors’ proposed lien challenge doesn’t have enough strength to get off the ground, with GST AutoLeather contending...
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