F-Squared Discovery Delayed In Del. Ch. 11 Trustee Suits

Law360 (June 18, 2018, 10:18 PM EDT) -- Citing pivotal, unsettled questions of law, a Delaware bankruptcy judge on Monday postponed mediation and most discovery in a string of extended clawback actions filed by the liquidating trustee for F-Squared Investment Management LLC, pending resolution of dismissal motions.

Judge Laurie Selber Silverstein said the ruling, which could change the pace and course of an already unusual Chapter 11, might have been the first for which she allowed dismissal arguments to stop or slow discovery in Chapter 11-related adversary proceedings.

At issue are objections that the company's liquidating trustee wrongly deployed arguments that F-Squared had been "insolvent since inception" — a...

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