Colonial Bancorp Judge Won't Extend Automatic Stay

By Jacqueline Bell

Law360, New York (January 07, 2010, 7:38 PM ET) -- A federal judge has refused to extend an automatic stay to all defendants in a consolidated securities lawsuit alleging bankrupt Colonial BancGroup Inc. misled investors about its subprime lending practices.

In a decision handed down Thursday, Judge Myron H. Thompson nixed a bid by the so-called underwriter defendants, which include Charles Schwab & Co. Inc., Credit Suisse Securities LLC and H&R Block Financial Advisors, among many others, to extend the automatic stay provisions of the Bankruptcy Code beyond bankrupt defendant Colonial BancGroup to all the parties...
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