Eight banks objected to Baldwin’s proposal.
The banks filed their objection in U.S. Bankruptcy Court. They said their loans to Baldwin-United were fully secured and must be repaid in full. The banks say that they are still owed $560 million and that interest will increase the debt until it is fully paid. Manufacturers Hanover Trust filed the objection to the reorganization proposal on behalf of itself and the other seven banks. The banks had loaned Baldwin $584 million for its ill-fated purchase of MGIC Investment.