Major creditors of Westinghouse Electric Co. say they are concerned that their interests are taking a back seat to corporate parent Toshiba Corp., as company advisers solicit bids for the business, WSJ Pro Bankruptcy reported. A committee representing Westinghouse unsecured claimholders filed an objection on Tuesday in U.S. Bankruptcy Court in New York that criticizes how the company has moved the restructuring forward and claims the committee to date has “scarcely been involved” in negotiating the terms of a potential chapter 11 plan. Now, the committee is asking a judge for the authority to file a competing chapter 11 plan, if necessary, so that creditors can take control of the Westinghouse sale process. The committee said that a shake-up is needed because Toshiba is under pressure to complete “a quickie deal to recognize tax losses” and that Westinghouse management “has no motivation to maximize value for creditors.”
