Borrowers Lose Bid For Panel In Accredited Ch. 11

Law360, New York (August 6, 2009, 4:29 PM EDT) -- The federal judge overseeing Accredited Home Lenders Holding Co.’s Chapter 11 liquidation has refused to allow a committee to represent the legion of borrowers allegedly blindsided by the fallen mortgage lender’s predatory loan practices.

Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware on Wednesday denied a bid by Accredited borrowers to create a second creditors committee to make sure that homeowners ensnared in allegedly abusive loans have a say in the bankruptcy process.

Lyle and Patricia Wroan urged the court...
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