Creditors Denied Standing To Sue Capitol Bancorp Officials

Law360, Chicago (July 12, 2013, 7:08 PM ET) -- A Michigan bankruptcy judge on Thursday refused to authorize Capitol Bancorp Ltd.’s creditors to sue the bank holding company’s top brass over alleged fraudulent transfers and breaches of fiduciary duty.

In a brief order, U.S. Bankruptcy Judge Marci B. McIvor denied the official committee of unsecured creditors’ motion for standing to bring claims against the company’s officers and directors on behalf of the bankruptcy estate. The order followed a Tuesday hearing on the matter.

Few details about the committee’s planned lawsuit are publically available, as all...
To view the full article, register now.