Bancorp Blasts Releases In AmFin Ch. 11 Plan

Law360, New York (August 29, 2011, 7:52 PM EDT) -- The Bancorp Bank, an online bank holding $2.3 million in AmFin Financial Corp. securities, urged an Ohio bankruptcy court on Saturday to reject AmFin’s latest disclosure statement because it continues to incorporate overbroad litigation releases.

Bancorp renewed objections it raised to AmFin’s previous disclosure statement and said the latest version did nothing to remedy sweeping releases in the Chapter 11 plan that would extinguish potential claims against insiders and executives who  allegedly lied about its risky lending practices. AmFin is the parent of defunct AmTrust Bank....
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