Heller Creditors Probe Banks' Secured Status

Law360, New York (January 23, 2009, 12:00 AM EST) -- Bankrupt law firm Heller Ehrman LLP has tasked its unsecured creditors committee with investigating the legitimacy of Bank of America NA and Citibank NA's contested security interests in the defunct law firm and possibly suing the banks, the committee's lawyer has said.

On Wednesday, in the U.S. Bankruptcy Court for the Northern District of California, Heller agreed to assign the banks' claim to the creditors committee to investigate, according to attorney Steven Felderstein of Felderstein Fitzgerald Willoughby & Pascuzzi LLP, who represents the committee.

“We will...
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