AHM Ch.11 Plan Unfairly Frees Execs: SEC

Law360, New York (January 28, 2009, 12:00 AM EST) -- Already facing considerable opposition to its Chapter 11 liquidation plan, American Home Mortgage Holdings Inc. has come under fire from federal regulators who contend the plan seeks to release the company’s brass from potential lawsuits over securities violations.

The U.S. Securities and Exchange Commission lodged an objection Monday in the U.S. Bankruptcy Court for the District of Delaware, taking issue with the proposed plan’s exculpation provision, which the agency says may allow executives presently under investigation to escape enforcement actions.

The "overly broad" exculpation provision not...
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