Archway Creditors Allege Accounting Fraud

Law360, New York (January 21, 2009, 12:00 AM EST) -- The creditors committee of Archway Cookies LLC has bared its teeth as the company nears Chapter 7 liquidation, alleging that company insiders and parent company private equity fund Archway Catterton Partners V LP defrauded lenders and hastened the bakery’s demise.

In an adversary complaint filed Tuesday in the U.S. Bankruptcy Court for the District of Delaware, the committee of unsecured creditors claim Catterton and Archway’s top brass, intent on unloading the struggling bakery, carried out a prolonged accounting fraud in order to land loans from Wachovia...
To view the full article, register now.