Schefenacker German bondholders drop permanent injunction appeal

By Caroline Salls

Pittsburgh, Oct. 3 - Schefenacker plc's German bondholders withdrew their appeal of an order granting a permanent injunction recognizing Schefenacker's modified company voluntary arrangement in the United States, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, on June 14, counsel for the bondholders argued that they did not receive proper notice as to how and where to file objections to the company's modified arrangement.

At that same hearing, judge Stuart Bernstein granted a permanent injunction recognizing the company voluntary arrangement - an action that gives the U.S. court a role in the restructuring - but refused to make a decision on whether to enforce it until further hearings have been held.

He noted that two issues remained: whether the foreign proceeding was a main or non-main proceeding and why the bondholders had not addressed their grievances with the U.K. courts.

Schefenacker is a Brighton, England-based auto parts company. Its chapter 15 case number is 07-11482.

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