Grubb & Ellis creditors committee opposed to request for use of cash

By Lisa Kerner

Charlotte, N.C., March 13 - Grubb & Ellis Co.'s official committee of unsecured creditors filed an objection to the debtors' motion for the entry of interim and final orders for the use of financing and cash collateral, according to documents filed with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is set for March 16.

The committee said in its filing that it has identified "certain objectionable provisions" of the interim debtor-in-possession order that should be modified in any final DIP order before the order is entered.

Also, the committee has discussed several modifications to the interim DIP order that it reserves the right to have made out of an abundance of caution in the event that the final DIP order does not reflect the changes, the filing said.

As previously reported Grubb & Ellis asked the court on March 1 to increase the borrowing limits under its interim DIP financing to $15.5 million from $5.5 million.

The company said the increase would allow it to implement a proposed broker loan program with non-insider brokerage sales professionals and to pay commissions to the brokers in the ordinary course of business.

Grubb & Ellis, a Santa Ana, Calif.-based real estate services and investment firm, filed for bankruptcy on Feb. 20. The Chapter 11 case number is 12-10685.

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