Judge Approves SBA Takeover Of Venture Capital Firm

Law360, New York (August 9, 2012, 6:53 PM EDT) -- A California federal judge on Wednesday placed technology venture capital firm Novus Ventures II into receivership after it failed to pay back nearly $40 million in U.S. Small Business Administration loans.

U.S. District Judge Lucy Koh allowed the SBA to take charge of the ailing firm so that it can properly liquidate its assets and oversee the payment of creditor claims.

"Although there are no allegations of fraudulent conduct on Novus’ part, there is no dispute that SBA has a valid claim to a debt of...
To view the full article, register now.