Syms' Ch. 11 Plan Harms Creditor Setoff Rights, IRS Says

Law360, New York (August 20, 2012, 5:50 PM EDT) -- A Delaware bankruptcy judge should reject the Chapter 11 reorganization plan of discount clothing retailer Syms Corp. and its subsidiaries because the plan would bar creditors from asserting post-confirmation setoff rights, the Internal Revenue Service said Friday. 

Under the proposed plan, creditors will waive their setoff rights if they don't assert a setoff claim on or before the confirmation date, the IRS said in its objection. But that stipulation doesn't protect creditors from setoff claims that may come to light in the post-confirmation stage and runs...
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