I'm Confused
Again. This morning's Daily Bankruptcy Review reports that Fisker's creditors want to sue the debtor's secured lender. This is part of a fight over the proceeds of a 363 sale, where the holder of the secured debt was infamously limited to credit bidding the amount it had paid for the debt, rather than the full face amount.
Now the creditors want to contest the validity of the $168.5 million secured loan that Hybrid Tech Holdings LLC purchased from the Department of Energy. In short, they argue that Hybrid discouraged bidding at the loan sale, so it was able to pay the DOE less than the loan was worth. Thus they want to void part of the creditor's lien ...
This is where I get lost. How do the creditors have standing to challenge a sale they were not part of? And how are they harmed by the secured creditor's actions? Isn't this something for the DOE to complain about?
Alas, the story provides no answers.
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