Battle Rages Over Brooke Bankruptcy Conversion

Law360, New York (January 6, 2009, 12:00 AM EST) -- The unsecured creditors committee of bankrupt insurance agency Brooke Corp. objected on Monday to a move to expedite the company's liquidation by banks that provided securitization services to Brooke.

In a filing in the U.S. Bankruptcy Court for the District of Kansas, the unsecured creditors called the bid for a speedy Chapter 7 liquidation of Brooke a “leverage tactic” by DZ Bank AG and other securitization company creditors to secure approximately $5.3 million dollars from Brooke's nonbankrupt subsidiaries without court authorization or an agreement with the...
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