SEC Disputes Ch. 11 Plan For Three-Five

Law360, New York (June 8, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has smacked down Three-Five Systems Inc.’s reorganization plan, arguing that it clears the way for an unauthorized “fresh start” to the company’s reorganized corporate shell.

The SEC, which filed its objection Tuesday in the U.S. Bankruptcy Court for the District of Arizona, contested that Three-Five, based in Tempe, Ariz., should not be released from the remaining debts after company’s liquidation, but should keep the debts with the company’s shell corporation.

“The policy of providing corporate debtors a ‘fresh start’ through...
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