Unused Cash Concern Delays Orchids Paper's Ch. 11 Loan

By Jeff Montgomery (May 30, 2019, 9:18 PM EDT) -- Bankrupt Orchids Paper Products Co. postponed final action on an $11 million debtor-in-possession loan Thursday, after a Delaware bankruptcy judge challenged terms that could leave $7 million unused while $14.5 million in postpetition vendor and trade claims pile up awaiting an uncertain outcome.

U.S. Bankruptcy Judge Mary F. Walrath branded as "misleading" some provisions in the DIP agreement with private equity-backed Orchids Investment LLC, prompting the debtor and lender to reschedule a final hearing on the deal for June 13.

Orchids Investment, which is also serving as stalking horse bidder for an upcoming company sale, is an indirect affiliate of Black...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!