Coyne International creditor objects to further use of cash collateral

By Mark Reccek

Bethlehem, Pa., Dec. 17 – Coyne International Enterprises Corp. creditor Medley Opportunity Fund II LP objected to the company's further use of any cash collateral, according to a Dec. 16 filing with the U.S. Bankruptcy Court for the Northern District of New York.

The cash collateral use is set to expire on Dec. 21.

Medley said it has not consented to any further use of cash collateral, and Coyne has not offered Medley any form of adequate protection related to further use.

According to Medley, because Coyne has no ongoing operations and no substantive material unencumbered assets, Medley cannot be provided adequate protection.

"Therefore, any further use of cash collateral by the debtor will result in a direct diminution of Medley’s interest in such collateral, and the debtor is unable to provide any form of adequate protection as contemplated under section 361 of the Bankruptcy Code," the objection said.

Coyne International Enterprises, a Syracuse, N.Y.-based commercial laundry company, filed for bankruptcy on July 31. The Chapter 11 case number is 15-31160.

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