Texas Tax Agency Seeks To Overhaul Ch. 11 Setoffs

Law360, New York (July 1, 2010, 3:55 PM EDT) -- The chief tax collector of Texas has objected to U.S. Concrete Inc.'s reorganization plan, arguing that bankruptcy judges must put a halt to the accepted practice of nixing creditors' setoff rights, particularly in light of the high court's guidance in Espinosa v. United States Aid Funds Inc.

The Texas Comptroller of Public Accounts called for a “fundamental reassessment” of the confirmation process that would undo years of common court practice, in an objection Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

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