NetBank Trustee Objects To Liquidation Plan

Law360, New York (September 3, 2008, 12:00 AM EDT) -- The U.S. trustee overseeing the bankruptcy of NetBank Inc., the holding company behind the former online bank, has objected to the company's proposed liquidation plan, saying that it would exculpate non-debtors.

In a motion filed Tuesday in the U.S. Bankruptcy Court for the Middle District of Florida, U.S. Trustee Donald F. Walton took aim at a provision in the plan that would clear “officers, directors, advisers, attorneys and agents” of NetBank, its creditors committee and trustees of all liabilities connected to the bankruptcy.

The releases go...
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