Hawkeye Renewables' second-lien agent denied request for committee

By Lisa Kerner

Charlotte, N.C., March 9 - Hawkeye Renewables, LLC's second-lien agent Wilmington FSB's motion to have the court appoint an official committee of unsecured creditors or an official committee of second-lien lenders was denied, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The U.S. trustee, the debtors and the first-lien agent had filed objections to the motion, the filing said.

As previously reported, the second-lien lenders believed the Hawkeye's prepackaged plan of reorganization "provides unsecured creditors with a paltry recovery" and "is based upon an artificially depressed valuation of the debtors - following a trough year of a cyclical business - that deprives the second-lien lenders of a fair and appropriate recovery."

Hawkeye Renewables is an Iowa Falls, Iowa, manufacturer of alcohol-based fuel derived from corn. It filed for bankruptcy on Dec. 21 and its Chapter 11 case number is 09-14461.

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