US Must Defend Delaying $2.9M Payments To ArmorWorks

Law360, New York (August 28, 2013, 6:20 PM EDT) -- The U.S. Department of Defense needs to explain why it halted more than $2.9 million in contract payments to ArmorWorks Enterprises LLC if the agency doesn't want to be held in contempt for violating a bankruptcy-inspired automatic stay, an Arizona judge ordered on Tuesday.

The government will have to defend delaying payments on a body armor contract with bankrupt ArmorWorks and explain why it shouldn't be held in contempt for such violations of an automatic stay, according to Tuesday's order. U.S. Bankruptcy Judge Brenda Whinery granted...
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