A group of creditors to bankrupt auto-dealership lender PrimaLend cited “grave concerns” over its Chapter 11 filing, especially the exclusion from the process of what they called its “most distressed” entity.
The ad hoc group of holders of $75 million of bonds issued by PrimaLend’s main holding company, which stopped paying interest on the debt several months ago, said the move to leave out the entity was designed to reduce the influence of unsecured creditors like them. It also objected to PrimaLend’s request for court approval to access bankruptcy financing, which sought to force a guaranty and legal releases by the entity, PCAP Holdings.