Appvion Creditors Say New DIP Loan Bid Ploy For Assets

Law360 (March 9, 2018, 7:32 PM EST) -- Specialty paper maker Appvion Inc.’s unsecured creditors have hit back against the debtor’s proposal to take out a new $100 million debtor-in-possession loan, telling a Delaware bankruptcy court that the loan is just a thinly veiled ploy by the lenders to lock down a $363 million stalking horse bid for the company’s assets.

The new DIP motion contains provisions that would pull the rug out from under the committee of unsecured creditors in several ongoing disputes with Appvion’s secured lenders, and the committee says new liens...
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