Malden Mills Sparks Fraud Dispute With New Ch. 11

Law360, New York (January 12, 2007, 12:00 AM EST) -- A plan by Malden Mills Industries Inc. that finalized its old Chapter 11 proceedings in Massachusetts one day before it filed a new bankruptcy in Delaware has come under fire from creditors accusing the company of fraudulently leaving them out of the loop.

Massachusetts Bankruptcy Judge Joel Rosenthal held an emergency hearing on Friday to consider the creditors’ bid to reopen the old case following the refusal a day earlier by Delaware Bankruptcy Judge Kevin Gross to block the attempt.

Judge Goss, who was assigned the...
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