As the case winds its way toward confirmation, it appears that the bondholders who will be inheriting the equity as part of the reorganization are pursuing former owner Cerberus with the establishment of a $5 million litigation trust, and there is considerable speculation that the bondholders will look to sell off part of the company if the plan is ever confirmed. Meanwhile, both the SEC and the U.S. trustee are objecting to the plan because of releases that are granted to Cerberus.

Cerberus is arguing that it is providing considerable support to Remington in an effort to maximize the estate and ... Log in to view full article.