According to the U.S. Bankruptcy Court docket, multiple parties – including Aurelius Capital Management, NII Holdings and the official committee of unsecured creditors – filed separate objections to the ad hoc group of NII Capital 2021 noteholders’ motion for an order directing NII Holdings to participate in mediation, pursuant to Sections 105(A) and 105(D) of the Bankruptcy Code, Local Bankruptcy Rule 9019-1 and General Order M-452.
The Debtors state, “After a year of a continuous discussion, negotiation and – at times – dispute with the key parties to this case, the PSA2 has heralded the long-awaited support of a plan of reorganization by the requisite majorities in all major classes of claims against all applicable Debtors under the Plan. The path toward a value-maximizing exit from these chapter 11 cases is – thankfully – near.”
NIHD continues, “Under these circumstances, further burdening the Debtors by requiring them and their advisors to spend scarce capital and time to engage in mediation at this late stage in these cases and re-negotiate with holdout creditors in pursuit of the ill-conceived hope of reaching an incrementally higher support threshold – while potentially putting the support of holders of over 70% of those notes at risk – is counter to their obligations under the Bankruptcy Code and their fiduciary duties to their other stakeholders. Both before the commencement of these cases and since, the Debtors have pursued a consistent strategy designed to marshal maximal support for a confirmable plan. And this effort has resulted in success. The Debtors never froze out the Capco 2021 Noteholder Group.”
The objection further explains, “The Debtors led these horses to water, but could not force them to drink and, by necessity, had to move on. Congress in enacting section 1126 of the Bankruptcy Code does not require this Court or these Debtors to tolerate or reward such recalcitrant and resource-depleting behavior. With that being said, no one is begrudging the members of this group their existing rights as parties eligible to vote on or object to the Plan.” LuxCo Group and Capital Research and Management also filed separate joinders to the Debtor’s objection to the same motion.
Learn more about NIHD’s bankruptcy.