Lenders Infighting Risks American Tire Distributors’ Bankruptcy
- Dissenting lenders excluded from participating in DIP loan
- Judge poses questions, hearing set to continue on Thursday
The crux of their issue was that some lenders were excluded from participating the debtor-in-possession financing.
Photographer: Graham Hughes/BloombergThis article is for subscribers only.
A fight between lenders of American Tire Distributors Inc. over bankruptcy financing is threatening to derail the company’s path to emerge from Chapter 11.
The current debtor-in-possession financing plan could risk a lawsuit down the road, Judge Craig T. Goldblatt told lenders at a Tuesday hearing in Delaware.