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International Aluminum's mezzanine lenders oppose bankruptcy filings
By Lisa Kerner
Charlotte, N.C., Jan. 6 - International Aluminum Corp.'s mezzanine lenders objected to the company's motion seeking preliminary approval of its disclosure statement, according to a motion filed on Wednesday in the U.S. Bankruptcy Court for the District of Delaware.
The lenders also are objecting to International Aluminum's motion seeking approval of the form of notice of combined hearing on the approval of the disclosure statement and confirmation of the debtor's proposed joint plan of reorganization.
In addition, the lenders are objecting to approval of the solicitation packages and voting procedures.
The mezzanine lenders include Carlyle Mezzanine Partners, LP; AEA Mezzanine Funding LLC; AEA Mezzanine Funding B; AEA Mezzanine (Unleveraged) Fund LP; New York Life Investment Management Mezzanine Partners II, LP; and NYLIM Mezzanine Partners II Parallel Fund, LP.
According to the motion, the lenders are the company's largest unsecured creditors and are owed more than $50 million.
The lenders claim that International Aluminum did not file Chapter 11 to reorganize but to "wipe out the mezzanine lenders and their recoveries entirely."
"All while proposing an illegal fast-track plan of reorganization" that discriminates against the mezzanine lenders and "embodies sweetheart deals by management," the filing said.
International Aluminum, a Monterey Park, Calif., manufacturer of diversified lines of aluminum and vinyl products, filed for Chapter 11 bankruptcy on Jan. 4. Its case number is 10-1003.
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