Manhattan Judge Issues Surprise Ruling
Posted on Dec 5, 2011 3:15pm PST
A Manhattan judge issued a surprising ruling this week regarding the bankruptcy case of a brokerage firm.
The New York based firm filed for business bankruptcy earlier this year, prompting an outcry from existing clients. These clients wanted to band together to form a committee, but the judge ruled that this would not be permissible. Even though these clients have a total of $4.54 billion in frozen accounts, they will not be allowed to form their own committee. This ruling came shortly after some additional shocking news went public: of these funds, as much as $1.2 billion is currently missing.
Instead of forming a committee, the commodity customers' will be able to work with a court-appointed trustee regarding their frozen funds.
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