CREDITORS OBJECT TO HOLT’S PROPOSED $15-MILLION LOAN
Several unsecured creditors of Holt Group Inc. have filed motions in the U.S. Bankruptcy Court in Wilmington, Del., objecting to a motion by Holt seeking the court’s approval of a $15 million loan from Wells Fargo Business Credit Inc.
Wells Fargo proffered the loan after Holt Group Inc. filed for Chapter 11 bankruptcy protection on March 21, 2001. At that time, Holt listed assets worth $257.5 million and liabilities of $197.7 million.
First Union National Bank; PNC Bank, N.A.; the Bank of Gloucester County; MBC Leasing Corp., and JP Morgan Trust Co. were among those creditors objecting to Holt’s bid for its DIP (debtor in possession) loan.
In one case, First Union noted that, under the proposed financing agreement, Holt Group would grant liens from Wells Fargo a higher priority than liens of First Union, which were in place before Holt filed for bankruptcy protection.
A hearing will be held on Jan. 29 at 2 p.m. before the bankruptcy court in Wilmington.