Marcal Creditors Seek Permission To Sue NexBank

Law360, New York (January 10, 2008, 12:00 AM EST) -- The unsecured creditors committee in Marcal Paper Mills Inc.'s bankruptcy asked the court on Wednesday to authorize it to prosecute claims against stalking horse bidder NexBank SSB for allegedly taking “undue advantage of a faltering company.”

The Official Committee of Unsecured Creditors said that it had begun an investigation of claims that Marcal holds against third parties, including NexBank, which it accused of fraud and of breaching its fiduciary duty, among other claims.

Requests to Marcal to prosecute the claims remained unanswered, the committee said. It...
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