Meruelo Maddux Ordered To Retract Creditor Bashing

Law360, New York (September 24, 2010, 5:32 PM EDT) -- A bankruptcy judge has ordered a California real estate company to retract a press release that attacked a competing plan for the company’s emergence from Chapter 11, saying the press release was not only improper but contained “substantial inaccuracies.”

The Sept. 9 release, posted by Meruelo Maddux Properties Inc. on the PR Newswire website, likened a reorganization plan submitted by two of its major creditors, Legendary Investors Group No. 1 LLC and East West Bank, to a “hostile takeover” in the guise of a court filing....
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