AHLH Noteholders Enter Mediation With Lone Star

Law360, New York (September 21, 2010, 6:56 PM EDT) -- Accredited Home Lenders Holding Co. junior noteholders agreed Tuesday to enter mediation to resolve their lawsuit accusing a private equity fund of manipulating the subprime lender’s credit rating and hastening its plunge into bankruptcy.

Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware signed off on the joint motion filed by Wells Fargo Bank NA, as indenture trustee to the noteholders, and Lone Star Fund V, a private equity firm that purchased AHLH in 2007.

The junior noteholders’ suit alleges that...
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