Trustee Slams Metabolife Plan

Law360, New York (August 22, 2007, 12:00 AM EDT) -- A United States Trustee has voiced opposition to Metabolife International Life Inc.'s proposed Chapter 11 Plan, arguing that it will shield the ephedra diet pill maker's officials and subsidiaries from future lawsuits and free fiduciaries of their responsibilities.

“Unfortunately, the plan goes much further than merely being a voluntary compromise between willing parties,” Tiffany Carroll, the U.S. Trustee, said in an objection filed on Aug. 17 in the U.S. District Court of San Diego. “The non-debtor releases proposed under the plan will affect the rights not...
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