US Blasts Interest Scheme In Accuride Ch. 11 Plan

Law360, New York (January 29, 2010, 3:41 PM EST) -- The federal government has weighed in on Accuride Corp.'s third amended Chapter 11 reorganization plan, objecting to the bankrupt wheel maker's allegedly illegal interest structure on priority tax payments.

In a concise, four-page objection lodged Thursday in the U.S. Bankruptcy Court for the District of Delaware, the tax division of the U.S. Department of Justice contended that the plan “fails to provide for lawful interest on the United States' priority tax claims.”

“Applicable nonbankruptcy law sets the interest rate on tax underpayments, and provides that interest...
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