DBSI Plan Aims To Form Liquidation, Litigation Trusts

Law360, New York (July 19, 2010, 7:23 PM EDT) -- Bankrupt real estate investment company DBSI Inc. has put forth a liquidation plan in which the majority of creditors will recover less than 20 cents on the dollar for approximately $800 million in claims.

DBSI filed its amended Chapter 11 liquidation plan and disclosure statement on Friday in the U.S. Bankruptcy Court for the District of Delaware, aiming to set up liquidation trusts and calculating that most of the creditors will receive an 18.5 percent return on their claims, while other big creditor groups will recover...
To view the full article, register now.