Judge denies motion to reconsider Maxim Crane's final DIP approval

By Jeff Pines

Washington, Aug. 11 - A bankruptcy court judge denied a request to reconsider the final approval of Maxim Crane Works' $70 million debtor-in-possession financing, according to court documents.

The motion to reconsider came from Ray Anthony, who sold his company to ACR Management LLC, which is Maxim's legal name. Anthony is involved in a lawsuit with the company.

In Anthony's objection, he had alleged the committee of unsecured creditors and Maxim Crane Works struck a deal that eliminated an enhancement for the first secured creditor and that only the committee would get the opportunity to investigate the first secured creditor for 120 days. The committee also had sole rights to file an adversary action or start a contested matter about the secured creditor claim. Anthony said he wanted the same rights.

Maxim, its DIP agent Fleet National Bank and the official committee of unsecured creditors opposed reconsideration.

Maxim said Anthony violated certain non-compete agreements and wanted the approval of the DIP financing reconsidered as a way to gain leverage with Maxim.

Fleet added that Anthony's motion did not raise any new issues, and the committee said that it should solely have the authority to investigate the company and not independent unsecured creditors.

The hearing on the motion was held Tuesday.

Maxim filed for bankruptcy on June 14 with the U.S. Bankruptcy Court for the Western District of Pennsylvania. Its Chapter 11 case number is 04-27848.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.