Mineral Park creditor committee objects to terms of cash collateral

By Kali Hays

New York, Sept. 18 – Mineral Park Inc.’s official committee of unsecured creditors objected to the company’s request for final approval to use cash collateral, according to a Sept. 17 filing with the U.S. Bankruptcy Court for the District of Delaware.

Having been appointed on Sept. 9, the committee said it has not been given adequate time to review the “claims, liens and interests” of the finance parties, Societe Generale and Barclays.

The committee further objected to the “scope and breadth of the proposed releases of the financing parties” which bar avoidance actions, according to the filing.

“The committee presently has no knowledge of the extent to which the finance parties have been involved in management or operation of the debtors [and] objects to the proposed stipulations pending receipt of substantial additional information.”

While the committee said it does not intend to prevent the company from using cash collateral, it asked that the court order the terms of the agreements revised based on its objection.

A hearing on final approval of Mineral Park’s use of cash collateral is set for Sept. 23.

Mineral Park is a subsidiary of Vancouver, B.C.-based copper mining company Mercator Minerals Ltd. The company filed for bankruptcy on Aug. 25 under Chapter 11 case number 14-11996.

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