Schramm Creditor Says Ch. 11 Sale Is An Insider Deal

Law360 (September 6, 2019, 7:29 PM EDT) -- An unsecured creditor of drilling rig maker Schramm Inc. objected Friday to the company's proposed Chapter 11 sale, saying the deal is a thinly veiled attempt by the debtor's primary equity holder to maintain its ownership of Schramm.

In the objection, creditor DNOW LP said Schramm's proposed sale to GenNx360 Capital Partners LP — which owns 99 percent of the debtor's immediate parent, HDR Holding Inc. — is an insider scheme devised to allow GenNx to keep its stake in Schramm while wiping out its own debt holdings.

"The proposed 'sale' is really nothing more than a GenNx-devised construct to 'wash'...

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