5th Circ. Pins $29.7M Claim To Pacific Lumber

Law360, New York (October 20, 2010, 3:55 PM EDT) -- Bank of New York Trust Co. and several other noteholders were shortchanged $29.7 million during Pacific Lumber Co.'s Chapter 11 reorganization, a federal appeals court has ruled.

The U.S. Court of Appeals for the Fifth Circuit ruled on Tuesday that a bankruptcy court had failed to award noteholders their portion of proceeds Pacific Lumber earned from timber sales during the bankruptcy proceedings.

The court ordered Pacific Lumber, which was bought out of bankruptcy by Marathon Structured Finance Fund LP and Mendocino Redwood Co. LLC in 2008,...
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