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M&G Creditors Say $100M DIP Loan Could 'Cripple' Case

Law360, Wilmington (December 7, 2017, 4:15 PM EST) -- The official committee of unsecured creditors in M&G USA Corp.’s Chapter 11 took sharp aim late Wednesday at the plastics company’s proposed $100 million post-petition financing package, arguing that it would “cripple” the bankruptcy estate and allow the prepetition senior lender to “take its collateral and run.”

In an objection before the Delaware bankruptcy court, the committee called "offensive" parts of the debtor-in-possession financing package from a unit of Banco Inbursa SA, which is M&G’s senior creditor. It argued that the financing allows the lender to...
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