Bankrupt Solar Co. Is Hiding Deceitful Past, Creditors Say
By Stephanie Russell-Kraft
Law360, New York (January 7, 2014, 3:40 PM ET) -- Creditors of bankrupt Worldwide Energy & Manufacturing USA Inc. accused the company Monday of hiding important information in its reorganization plan, saying the company is underplaying the damage caused by its founder and former chairman including a $100,000 U.S. Securities and Exchange Commission fine.
The unsecured creditors committee objected in Colorado bankruptcy court to the company's most recent disclosure statement and reorganization plan, saying WEMU's disclosures gloss over significant aspects of the company's past deceitful behavior.
Specifically, the creditors argued the company has a duty to...