Creditors Try To Push Lender TransLand Into Ch. 11

Law360, New York (August 24, 2007, 12:00 AM EDT) -- Three banks have filed an involuntary petition for Chapter 11 against mortgage lender TransLand Financial Services Inc., claiming the company owes them more than $22 million in mortgage payments it collected on their behalf.

In a petition filed Thursday in the U.S. Bankruptcy Court for the Middle District of Florida, Tier One Bank, Federal Trust Bank and MidCountry Bank said TransLand had breached its fiduciary duty by failing to pay them monies owed. The creditor banks further alleged that TransLand had no assets with which to...
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