Texas Tax Steward Fights Flying J's Nondebtor Plan

Law360, New York (June 24, 2010, 2:41 PM EDT) -- The chief steward of Texas' finances has launched a challenge to the most recent version of Flying J Inc.'s reorganization plan, saying the bankrupt oil company is unfairly seeking to allow the “broad and expansive” release of nondebtors from liabilities.

In a filing Wednesday, the Texas Comptroller of Public Accounts urged the U.S. Bankruptcy Court for the District of Delaware to deny confirmation of the debtors' joint reorganization plan and disclosure statement, which contemplate paying off all creditors in cash and reinstating the debtors' equity....
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