AHM Liquidation Plan Gets Nod

Law360, New York (February 12, 2009, 12:00 AM EST) -- Having garnered necessary support for its latest proposed plan, American Home Mortgage Holdings Inc. is reportedly on the cusp of liquidation.

Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware confirmed the liquidation plan at a hearing Wednesday, despite objections from a committee of borrowers seeking damages from the estate for having been guided by AHM towards disastrous adjustable-rate mortgages, Reuters reported.

Under the plan the thousands of so-called option ARM borrowers are left empty handed after the unsecured creditors divvy up...
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