Ex-Thornburg Execs Win Access To D&O Benefits

Law360, New York (August 20, 2010, 5:00 PM EDT) -- A judge has allowed two former executives of bankrupt Thornburg Mortgage Inc. to seek insurance coverage for contract suits brought against them over allegations that they siphoned assets away from the ailing company to secretly launch a new business venture.

Judge Duncan W. Keir issued an order in the U.S. Bankruptcy Court for the District of Maryland on Tuesday allowing Thornburg’s former Chairman and CEO Larry A. Goldstone and former Chief Financial Officer Clarence G. Simmons III to access the insurance benefits.

However, the judge also...
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