Fedders creditors committee gets court approval to pursue claims

By Jennifer Lanning Drey

Portland, Ore., March 24 - Fedders Corp.'s official committee of unsecured creditors obtained court permission to pursue claims against several lenders, company insiders and outsider directors, according to a source familiar with the company's Chapter 11 proceedings.

The approval came Monday from the U.S. Bankruptcy Court from the District of Delaware and followed arguments from attorneys for the committee, the company and proposed defendants Goldman Sachs Credit Partners LP, Bank of America, NA, General Capital Corp. and Highland Capital Partners, LLC, as well as certain members of Fedders' senior management.

As previously reported, Fedders' creditors committee said the potential claims include allegations of breach of fiduciary duty, fraudulent conveyance, waste of corporate assets, interference with prospective business advantage, improvident lending and breach of good faith and fair dealing covenants.

The deadline for filing and serving the complaint is March 31, according to the source.

The court also informed the parties that it would like to hold a status conference with respect to the litigation prior to the commencement of discovery or any motion practice.

Fedders, a Liberty Corner, N.J., producer and marketer of air treatment products, filed for bankruptcy on Aug. 21. Its Chapter 11 case number is 07-11176.

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