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Coyne International creditor objects to exclusivity period extensions
By Mark Reccek
Bethlehem, Pa., Nov. 23 – Coyne International Enterprises Corp. creditor Medley Opportunity Fund II LP objected to the company’s request to extend the exclusive periods for filing a Chapter 11 plan of reorganization and soliciting votes on the plan, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of New York.
Medley said because the sales of most of Coyne's assets are scheduled to occur within the next few days and the proceeds of the sales will be used to pay off NXT Capital's senior secured debt, there is little that needs to be accomplished in the case requiring the costs associated with a Chapter 11 plan confirmation.
Additionally, Medley argues after NXT's debt is paid, Medley will remain as the company's only creditor with a valid lien on all of the remaining assets. Further, Medley contends because it is the company's largest creditor, confirmation of a plan is impossible without its consent.
According to the objection, “the debtor has not, and cannot, meet its burden to extend exclusivity in this Chapter 11 case.”
As previously reported, Coyne is requesting an extension of its exclusive filing period through Feb. 26 from Nov. 28 and an extension of its solicitation period through April 26, 2016 from Jan. 27.
Coyne said its progress in resolving various issues related to the Chapter 11 case justifies granting the extensions.
A hearing on the extension motion is scheduled for Nov. 30.
Coyne International Enterprises, a Syracuse, N.Y.-based commercial laundry company, filed for bankruptcy on July 31. The Chapter 11 case number is 15-31160.
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