Penson Ch. 11 Plan Unfairly Favors Bondholders: Creditors

Law360, Wilmington (March 12, 2013, 8:36 PM EDT) -- A committee representing Penson Worldwide Inc.’s unsecured creditors on Tuesday demanded more information on the defunct broker dealer’s liquidation plan, saying it improperly favors bondholders over unsecured creditors of Penson subsidiaries who are senior in priority.

In an objection filed in Delaware bankruptcy court, the committee said the plan hands bondholders control over all major decisions regarding Penson’s liquidation, including the timing of distributions to creditors and the resolution of potential disputes between the debtors as to how assets and claims should be allocated.

But the...
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