Objects to Diamond Assets Sale
Automotive Component Holdings Inc. (ACH) has filed an objection
to Diamond Glass' motion for approval of a proposed sale of its
HERE for related story.) In addition, Connecticut General Life
Insurance Co., local tax authorities in Texas, and D.L. Peterson
Trust, which leases vehicles to the Kingston, Pa.-based company,
also filed objections to the motion.
In its objection, ACH notes that in the motion for approval of
the sale, "all 'Encumbrances' to the assets proposed to be
sold are 'to attach only to the proceeds of the sale (if any) with
the same priority, validity, force and effect, if any, as they now
have in or against the Assets, subject to all claims and defenses
the Debtors may possess with respect hereto
ACH alleges that this provision "is not sufficient to provide
adequate protection for [its] setoff rights, because there has been
no provision made for the allocation of the sale proceeds between
the accounts receivable owed by ACH to the Debtors and the other
assets to be sold, and therefore the portion and adequacy of the
sale proceeds proposed to act as substitute collateral for ACH's
setoff rights cannot be determined." (CLICK
HERE for related story.)
ACH requests that the motion be denied, and that the court "condition
the sale as is necessary to provide adequate protection for [its]
for full text of ACH objection.
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