Creditors Win Bid To Investigate Musicland Execs, Board
By Marius Meland
Law360, New York (March 9, 2006, 12:00 AM EST) -- A request by bankrupt Musicland Holding Corp.'s committee of unsecured creditors to investigate the company for breaches of fiduciary duty, misleading public statements, and fraudulent transfers has been given the green light by a federal judge, allowing the creditors to seek documents from high-level executives and board members of the beleaguered music retailer.
The ruling also gives creditors authority to obtain documents from Musicland's lender, owner, trade lien creditors and former owner.
Last month, the creditors committee asked the court to allow the investigation, saying there...