Feds Object To Builder American West's Ch. 11 Plan

Law360, New York (September 7, 2012, 12:03 PM EDT) -- The U.S. government took issue Thursday with American West Development Inc.'s proposed reorganization, saying the Las Vegas home builder's Chapter 11 plan violates the Bankruptcy Code and should not be confirmed.

Filed in Nevada bankruptcy court on behalf of the Internal Revenue Service, the objection said the plan contained an unlawful provision that would bar government entities from pursuing claims against the debtor's estate. America West, which constructs, markets and sells homes, entered bankruptcy March 1.

The plan sets a bar date for administrative claims in...
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