Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Government, creditors object in CODA bankruptcy

[May 25, 2013]  DOVER, Del. (AP) -- Attorneys for the federal government and unsecured creditors have filed objections to electric car maker CODA Holdings' bankruptcy plans.

Court papers filed Friday argue that CODA's bankruptcy financing and sale plans unfairly benefit a group of debtors seeking to acquire the company.

Lenders led by a Fortress Investment Group affiliate are proposing a credit bid of $25 million to take over the company. In a credit bid, a lender uses debt it is owed to buy a company's assets, rather than cash.

Other objections filed Friday involve concerns about obligations of the new owners to adhere to federal environmental and vehicle safety laws, and proposed bonuses for top executives and directors at Los Angeles-based CODA.

A hearing in the case is scheduled Wednesday in Wilmington, Del.

[Associated Press; By RANDALL CHASE]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.