Banks Object to Fabrikant Liquidation Plan
A group of lenders has objected to M. Fabrikant & Sons Inc.’s latest proposed chapter 11 liquidation plan, saying that if approved, it would prejudge a dispute between the lenders and the company’s creditors, Bankruptcy Law360 reported on Friday. The objection was filed on Tuesday by JPMorgan Chase Bank NA, ABN Amro Bank NV, Bank of America NA, HSBC Bank USA and others. The banks said that the plan filed jointly by Fabrikant and its creditors committee on April 16, improperly addressed the lender’s right to recover attorneys’ fees in an adversary proceeding brought by the creditors. That should be decided as part of the adversary proceeding itself, the objection said.






