Law360, New York (June 03, 2011, 5:33 PM ET) -- Colonial BancGroup Inc. won approval of its Chapter 11 plan Thursday after making changes to address an Alabama bankruptcy judge's concerns that retaining a plan administrator would be more costly than hiring a liquidation trustee.
U.S. Bankruptcy Judge Dwight H. Williams Jr. initially rejected the plan after the Federal Deposit Insurance Corp., the receiver for Colonial's collapsed subsidiary Colonial Bank, pushed to have the case converted to a Chapter 7 liquidation. He shot down the plan in part because the potential fees for a plan administrator...
Colonial BancGroup's Ch. 11 Plan Wins Approval
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