Creditors Balk At Mortgages Ltd. Ch. 11 Plan

Law360, New York (May 4, 2009, 12:00 AM EDT) -- Creditors who provided funds to Mortgages Ltd. as it was struggling to stay afloat have objected to the bankrupt lender's reorganization plan, alleging it releases certain parties from liability for misrepresentations made by the company's president.

The creditors — Marc and Karen Goldblatt, MKG Enterprises LP, Aviva Gold, and Dan and Emily Kingston — filed the objection Friday in U.S. Bankruptcy Court for the District of Arizona to the plan, which was submitted by a committee of investors.

The creditors, who supplied about $2 million in...
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