Raser's Ch. 11 Plan Strips Creditors Of Rights: SEC

Law360, New York (August 25, 2011, 5:50 PM EDT) -- The U.S. Securities and Exchange Commission objected Wednesday to Raser Technologies Inc.'s amended Chapter 11 liquidation plan in Delaware bankruptcy court, saying the plan would wrongly discharge nondebtors who were still liable to the defunct geothermal energy company's creditors.

Provo, Utah-based Raser filed for bankruptcy protection April 28 after its only operational plant, Thermo No. 1, which provides power to Anaheim, Calif., failed to power up to expectations, creating a liquidity crisis that halted development of the company’s other projects.

According to the SEC, the company's...
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