Creditors Seek Conversion To Ch. 7 For Empire Land

Law360, New York (November 10, 2008, 12:00 AM EST) -- Alleging that the company’s principals used financial accounts “as their own personal piggy banks,” unsecured creditors of bankrupt development company Empire Land LLC asked the court to convert the case from a Chapter 11 to a Chapter 7.

“The debtors have perverted the Chapter 11 process” by allowing company funds to be used for “inappropriate expenses,” including $8,000-per-month fees for the CEO’s use of a private jet and American Express charges for shopping trips, said the motion filed Friday by the Official Committee of Unsecured Creditors...
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