Pashman Stein Walder Hayden P.C. Represents Minority Secured Lenders in Del Monte Chapter 11 Dispute
Pashman Stein Walder Hayden P.C. is representing certain members of an ad hoc group of minority secured lenders in an adversary proceeding commenced in Del Monte Foods Corp.’s pending Chapter 11 bankruptcy cases. The complaint alleges that certain super-senior term lenders received benefits through the company’s debtor-in-possession financing without sharing those benefits as required under related loan agreement terms.
The lawsuit asserts claims for breach of contract and breach of the covenant of good faith and fair dealing, and seeks a declaratory judgment enforcing the “sharing provision” in the super-senior credit facility at issue. According to the complaint, that provision requires lenders whose debt was reduced through the bankruptcy financing to share the resulting benefits proportionally with the plaintiff lenders in the action.
Pashman Stein attorneys John W. Weiss, David N. Cinotti, Leah M. Eisenberg, and David E. Sklar represent the ad hoc group of minority secured lenders in the matter, which is pending before the U.S. Bankruptcy Court for the District of New Jersey.
To read about the case in a Law360 article, “Del Monte Lenders Say Ch. 11 Loan Breaks Sharing Deal,” click here.
The case also received attention in two other Law360 articles, "Del Monte Says Ch. 11 Creditor Deal Creates Sale, Plan Path," here, and "Minority Lenders Question Benefit Of Del Monte Ch. 11 Deal," here.
