Creditors strike back

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Last month, a US bankruptcy court judge turned down a proposal by Citigroup Venture Capital (CVC) Equity Partners to invest $350 million into bankrupt Federal-Mogul, a move that would have scuppered a deal between the auto parts supplier and its creditors.The firm’s creditors, including billionaire investor Carl Icahn, asbestos claimants, and banks had negotiated a reorganization plan with the beleaguered Federal-Mogul in January this year. Filed before the US bankruptcy court in Wilmington,