AOL Latin America Offers Creditors Deal

Law360, New York (January 20, 2006, 12:00 AM EST) -- Shareholders of America Online’s bankrupt Latin American division have proposed a liquidation plan that will allow unsecured creditors to recover 100% of their claims, but only if they agree not to hold them liable for the Internet unit’s collapse.

The joint reorganization and liquidation plan, filed in U.S. Bankruptcy Court in Delaware, stipulates that unsecured creditors must agree to release the principal stockholders of AOL Latin America Inc. from responsibility attached to the company’s failure.

The provision would also extend to the company’s officers, directors and...
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