Lothian Bankruptcy Deal Survives Shareholder Challenge

Law360, New York (October 7, 2011, 3:27 PM EDT) -- A Texas federal judge on Wednesday refused to set aside a settlement in which bankrupt Lothian Oil Inc. agreed to give a supposed competitor, created by a group of shareholders, $200 million worth of property for $115,000 as part of an allegedly fraudulent Chapter 11 case.

U.S. District Judge Harry Lee Hudspeth upheld a bankruptcy court order declining to nix the settlement between Lothian and Nawab Energy, saying the appellants — a group of Lothian shareholders — filed their objection outside the 180-day window for revocation...
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