Mortgage Lenders' Plan Leaves Some Out In The Cold

Law360, New York (March 13, 2008, 12:00 AM EDT) -- Mortgage Lenders Network USA Inc. has unveiled a Chapter 11 liquidation plan that would provide $600 million to pay anywhere from 1% to 15% of unsecured claim amounts but would leave holders of subordinated claims and equity interests without reimbursement.

The bankrupt lender filed its plan of liquidation and an accompanying disclosure statement Wednesday in the U.S. Bankruptcy Court for the District of Delaware, almost two weeks before a hearing on extending its exclusivity period well into April was to have been held.

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