FDIC Opposes Corus Ch. 11 Plan Over $265M Tax Refunds

Law360, San Diego (September 6, 2011, 6:37 PM EDT) -- The Federal Deposit Insurance Corp. on Friday lodged an objection in an Illinois bankruptcy court over how the reorganization plan by real estate lender Corus Bankshares Inc. seeks to treat certain claims stemming from an ongoing $265 million tax dispute between the parties.

The FDIC, which is the receiver for Corus’ banking unit Corus Bank NA, argues that the plan cannot be confirmed because it violates the absolute priority rule of the Bankruptcy Code requiring senior creditors to be paid in full before junior creditors are...
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