WILMINGTON, Del.-A U.S. Bankruptcy Court in Wilmington, Del., denied NII Holdings Inc.’s proposed Chapter 11 reorganization plan noting its filed documents violated a number of provisions of the Bankruptcy Code, according to Dow Jones Newswire.
The violations included provisions allowing only some of NII’s class 6 creditors, including parent company Nextel Communications Inc., could designate the reorganized company’s directors; certain releases granted to interested parties protecting them from litigation were not acceptable; and that NII had yet to produce evidence it received enough creditor votes to support its reorganization plans to satisfy requirements under bankruptcy code.
NII Holdings, which originally filed for bankruptcy on May 24, said it did have enough votes and would submit resolutions to the issues by Friday.
