AmeriFirst objects to committee’s motion to handle claims against lender

By Sarah Lizee

Olympia, Wash., Dec. 8 – AmeriFirst Financial, Inc. objected to a motion from the official committee of unsecured creditors that seeks authority to prosecute claims against lenders RCP Credit Opportunities Fund Loan SPV (Fund III), LP and RCP Customized Credit Fund (Fund IV-A), LP, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company said the committee hasn’t satisfied its burden to prove that it is entitled to derivative standing to prosecute the alleged claims.

“The debtors concluded after an independent investigation that the alleged claims are not viable and, further, that the value of any viable claims would not exceed the amount needed to benefit the estate,” AmeriFirst said in the objection.

The company said that the debtors settled the alleged claims by releasing them in partial consideration of the post-petition financing, which was required by the lender.

“Even if the alleged claims were ‘colorable,’ which they are not, the committee utterly fails to meet its burden to prove that the debtors have unjustifiably refused to grant permission to prosecute them,” the company said.

The committee argues that RCP schemed to elevate its debt in the company’s capital structure, assume control of the debtors and ultimately, to destroy the debtors by pushing them into liquidation.

AmeriFirst Financial is a mortgage lender based in Mesa, Ariz. The company filed bankruptcy on Aug. 24 under Chapter 11 case number 23-11240.

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