Thornburg Asks Court To Stop Suits Against Officers

Law360, New York (August 18, 2009, 5:18 PM EDT) -- Bankrupt Thornburg Mortgage Inc. has gone to bat for its directors, with a demand that the court overseeing its Chapter 11 case intervene to halt securities suits against the embattled company bosses.

Two prepetition suits against the directors are a distraction that could end up costing creditors money, Thornburg said in an adversary complaint filed Friday in the U.S. Bankruptcy Court for the District of Delaware. Thornburg asked the court to recognize some “unusual circumstances” and stay the suits while it prepared its Chapter 11 plan....
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