Ch. 11 Doesn't Free Oil Co. From Fraud Case: Ruling

Law360, New York (May 26, 2009, 12:00 AM EDT) -- A Chapter 11 filing is not a get-out-of-jail-free card, a federal judge has told a Kentucky oil company that tried to dodge a state securities fraud trial after filing for bankruptcy.

A Tuesday trial against Young Oil Corp. will go on, Judge Danny Reeves of the U.S. District Court for the Eastern District of Kentucky said Friday. After filing for Chapter 11 bankruptcy, the oil and gas drilling company sought to remove a state securities fraud case against the company to federal court.

Young filed for...
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