IdleAire creditors committee says granting trustee's motion for an examiner would 'serve no purpose'

By Jennifer Lanning Drey

Portland, Ore., June 10 - IdleAire Technologies Corp.'s official committee of unsecured creditors objected to the U.S. Trustee's motion asking the U.S. Bankruptcy Court for the District of Delaware to appoint an examiner to investigate the company's proposed debtor-in-possession financing, asset sale procedures and asset value, according to a Monday court filing.

The committee said that while it shares the trustee's concerns regarding the circumstances surrounding the company's DIP financing and proposed asset sale price, it does not believe an examiner is warranted because the committee is already "actively and vigorously investigating the very matters identified by the United States Trustee in the motion."

The creditors believe appointment of an examiner would "serve no purpose."

Majority noteholders also object

In a separate court filing, a majority secured noteholder group also objected to the trustee's examiner motion. In the filing, the group claimed that the interim DIP financing order and sale bidder procedures represented arm's-length negotiations between the company, the secured noteholder group and other stakeholders in the company's Chapter 11 bankruptcy case.

The noteholders also argued that the creditor's committee is adequately monitoring the DIP and sale process.

As previously reported, U.S. trustee Roberta A. DeAngelis asked the court to appoint an examiner to investigate the details of the DIP loan and whether the proposed asset sale is in the best interests of creditors because the proposed purchase price is less than 10% of the book value of the company's assets disclosed in its most recent financial statements for the fiscal year ended Dec. 31.

IdleAire also objected to the trustee's motion on Monday.

A hearing is scheduled for June 13.

Based in Knoxville, Tenn., IdleAire is a privately held research and development company that provides products and services for the long-haul trucking freight industry. The company filed for bankruptcy on May 12. Its Chapter 11 case number is 08-10960.

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