Emerge Energy Unsecured Creditors Trash $35M DIP Plan
Law360 (August 12, 2019, 6:47 PM EDT) -- The unsecured creditors of silica sand proppant mining company Emerge Energy LP are asking the Delaware bankruptcy court to reject the terms of its proposed bankruptcy financing, saying the company’s secured lenders will use the deal to control the Chapter 11.
In a filing late Sunday, the unsecured creditors committee claimed the proposed debtor-in-possession financing agreement not only contains unnecessary and excessive liens for the prepetition lenders providing the post-petition loans, but it also contains default clauses locking Emerge into a restructuring agreement that vastly favors those lenders.
“For example, if the debtors attempt to exercise the fiduciary out under the...
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