Clawback Deals In Planned $116M Monitor Sale Irk Creditors

Law360, Wilmington (January 10, 2013, 3:32 PM EST) -- Unsecured creditors of Monitor Co. Group LP on Wednesday accused the bankrupt consulting firm of improperly shielding insiders from clawback litigation through the planned $116 million sale of the firm to rival Deloitte Consulting.

Under the deal, Deloitte contends it is buying avoidance claims against Monitor’s officers, directors and partners worth potentially $9 million, but the ploy essentially functions as a grant of releases to Monitor insiders for which the estate is receiving nothing, the company’s official committee of unsecured creditors said in an objection unsealed...
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