Indalex committee seeks case conversion to wrest control from lenders

By Caroline Salls

Pittsburgh, April 24 - Indalex Holdings Finance, Inc.'s official committee of unsecured creditors has asked the U.S. Bankruptcy Court for the District of Delaware to convert the company's Chapter 11 bankruptcy case to Chapter 7, according to a Friday court filing.

"As things stand at the moment, these Chapter 11 cases appear to exist for the sole benefit of the debtors' pre-petition senior secured revolving lenders and insider Sun Capital Partners, Inc. and its affiliates," the committee said in the motion.

The committee said Sun Capital has arguably placed Indalex "in the financially precarious position where it currently stands."

According to the motion, a going-concern sale of the company's assets will most likely "yield tens of millions of dollars less than an orderly liquidation conducted in a Chapter 7 and will leave nothing, including avoidance actions, for unsecured creditors."

Indalex, a Chicago-based producer of soft alloy extrusion products and an aluminum extruder, filed for bankruptcy on March 20. Its Chapter 11 case number is 09-10982.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.