Bankrupt Scrap Metal Co.'s Execs Sued For $65M By Creditors

Law360, New York (December 19, 2013, 8:05 PM EST) -- On the heels of Keywell LLC's sale to private equity-owned KW Metals Acquisition LLC, the creditors of the bankrupt metal recycling company slapped its officers and directors with a $65 million suit in Illinois bankruptcy court Tuesday, claiming the execs drained the company of funds while “lining their own pockets.”

Keywell’s unsecured creditors committee claims that after a particularly profitable year in 2007, the company’s directors improperly chose to distribute the spoils to shareholders, sending Keywell on the road to bankruptcy, according to the adversary suit....
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