Unsecured creditors of Reader's Digest Association say that its $105 million bankruptcy loan unfairly allows lenders "complete control" over the publisher's restructuring and will tie up assets that the unsecured creditors were counting on for payment, Dow Jones Daily Bankruptcy Review reported today. Reader's Digest's unsecured creditors' committee is specifically eyeing the $45 million "new money" portion of the $105 million loan, the remainder of which will refinance the company's old debt. According to the committee, the new money lenders have structured the financing in a way that will harm unsecured creditors.
