Smart Papers' creditors committee asks court to protect members from DIP lender deposition request

By Caroline Salls

Pittsburgh, May 8 - Smart Papers, LLC's official committee of unsecured creditors asked the U.S. Bankruptcy Court for the District of Delaware to protect committee members from a deposition request by debtor-in-possession lender Wachovia Bank, NA as part of an examination of disputed DIP financing issues, according to a Friday court filing.

The committee asked the court to limit depositions to the company's financial adviser because the information being sought in the deposition is substantially similar to information already sought from financial adviser Traxi LLC.

The committee called the deposition attempt "nothing more than a poorly disguised effort to harass and intimidate the committee and its members into withdrawing the committee's objection to the financing motion."

Smart Papers, a Hamilton, Ohio-based paper manufacturer, supplier and marketer, filed for bankruptcy on March 21. Its Chapter 11 case number is 06-10269.

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