Government Joins Attacks On MF Global's Ch. 11 Plan

Law360, New York (March 28, 2013, 6:15 PM EDT) -- The U.S. government has thrown its weight into the recent attacks on MF Global Holdings Ltd.'s bankruptcy plan, joining the U.S. trustee's objections to an “overly broad” provision that could release some parties connected to the former derivatives broker from their debts.

In a motion filed Wednesday in the U.S. Bankruptcy Court for the Southern District of New York, U.S. Attorney Preet Bharara went further and called the provision in the Chapter 11 plan for so-called nondebtor third-party releases “impermissible,” and worried they could result in...
To view the full article, register now.