Bondholders to PrimaLend Unit Cite ‘Grave Concerns’ Over Filing

A group of creditors to a PrimaLend unit filed an objection to the company’s attempt to receive ~$16m in bankruptcy financing from various banks that were secured lenders to the company before its Ch. 11 filing this week.

• Bondholders cited “grave concerns” over how company insiders treated certain lenders and company assets before its bankruptcy
• The group asked the court to intervene in what it called the company’s efforts to “evade court supervision” by not including the unit that issued the bonds in its Ch. 11 filing
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