IdleAire U.S. Trustee's motion for appointment of examiner denied

By Jennifer Lanning Drey

Portland, Ore., June 13 - IdleAire Technologies Corp.'s U.S. Trustee's motion asking the U.S. Bankruptcy Court for the District of Delaware to appoint an examiner in connection with the company's Chapter 11 bankruptcy case was denied in a Friday hearing, according to an attorney.

As previously reported, U.S. trustee Roberta A. DeAngelis wanted an examiner to investigate the company's proposed debtor-in-possession financing, asset sale procedures and asset value.

Both the company and its official committee of unsecured creditors objected to the motion on the grounds that an examiner would not be in the best interest of its creditors because it would add another layer of unfunded administrative expenses liability to the estate.

Additionally, they said the creditors committee was already active in reviewing the circumstances of the company's bankruptcy case.

The trustee wanted an examiner to investigate whether the company's proposed asset sale is in the best interests of creditors because the proposed purchase price is less than 10% of the book value of the company's assets disclosed in its most recent financial statements for the fiscal year ended Dec. 31.

DeAngelis said previously that no going-concern valuation has been obtained for IdleAire's assets; the company made "no active conscious effort" to sell its assets as a going concern before it negotiated various loan transactions and the proposed sale with its majority secured bondholders.

In addition, the trustee said the investors want to credit bid all or a portion of their bond debt, although they have not proven that they have any legal right to do so.

Based in Knoxville, Tenn., IdleAire is a privately held research and development company that provides products and services for the long-haul trucking freight industry. The company filed for bankruptcy on May 12. Its Chapter 11 case number is 08-10960.

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