Trustee To Mediate Quality Home's Ownership Spat

Law360, New York (November 1, 2007, 12:00 AM EDT) -- A court on Wednesday authorized the appointment of a Chapter 11 trustee in the bankruptcy case of subprime lender Quality Home Loans Inc., citing a dispute over ownership of the company arising from a hedge fund's proposed acquisition of the company.

The U.S. trustee had filed an emergency motion to appoint a trustee only two days before, backed up by a declaration from William Lobel, QHL's attorney.

“There is an issue as to who controls the debtor,” the U.S. trustee said in its motion. “Accordingly, this...
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