Florida Sawmill Can Tap Ch. 11 Loan Over Priming Worries
Law360 (May 14, 2020, 8:53 PM EDT) -- A Florida sawmill received interim approval Thursday from a Delaware bankruptcy court to obtain post-petition financing from an affiliate despite concerns raised by investors of the company's prepetition lender that its debt was being lowered in priority against its will.
During a hearing conducted by phone and video conferencing, Klausner Lumber One Ltd. overcame opposition from the limited partners of prepetition lender Florida Sawmill to obtain approval of the $2 million debtor-in-possession loan by showing that the facility was in the best interests of the debtor and its creditors.
Florida Sawmill's limited partners opposed the DIP loan, saying its general partner...
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