PrimaLend Creditors Oppose Bankruptcy Financing, Firm Retention

PrimaLend Capital Partners LP’s junior creditors objected to the subprime auto lender’s $28 million bankruptcy financing provisions, saying the language shifts value away from unsecured creditors.

A $21 million roll-up of pre-bankruptcy debt into the financing package is “excessive” and diverts value, a committee of unsecured creditors sand in a Dec. 12 filing in the US Bankruptcy Court for the Northern District of Texas.

“A roll-up of this magnitude shifts the entire risk of the case from the lender to creditors who neither negotiated the deal nor had any voice in its terms,” the committee said.

BVY Partners II LLC, ...