3rd Circ. Reopens Question On Deepening Insolvency

Law360, New York (September 22, 2011, 4:37 PM EDT) -- The Third Circuit on Wednesday revived a suit in which the unsecured creditors of a bankrupt Pittsburgh nursing home accuse executives of mismanaging the home and worsening its financial situation, a precedential decision on the issue of deepening insolvency in Pennsylvania law.

The official committee of unsecured creditors in the bankruptcy appealed U.S. District Judge Arthur J. Schwab's grant of summary judgment to the officers and directors of Lemington Home for the Aged on claims of breach of fiduciary duty and deepening insolvency.

Judge Schwab found...
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