National Bank Ordered to Continue Creditor Mediation

Rather than decide the case herself just yet, a bankruptcy judge in Wilmington, Delaware has ordered a national bank to continue mediation with its creditors.

According to her ruling last week, the bank must resume mediation attempts with its creditors and shareholders for another two weeks. In order for this business bankruptcy to be completed, there are still several issues to resolve. One primary issue that has kept the bank from exiting business bankruptcy is the allegation by shareholders that insider trading occurred.

The bank's attorneys presented a reorganization plan earlier this month to the judge, a plan that would have divided billions of dollars in tax refunds and cash. After reviewing the details of the plan, the judge rejected the plan, but did approve the settlement proposal. The company has been attempting to exit bankruptcy since it filed in September 2006. At that time, the bank was taken over by regulators and sold to a competing bank for $1.9 billion.

If you need assistance with your business bankruptcy, contact Bizar & Doyle, LLC to speak with a Chicago bankruptcy lawyer about your options as well as your consumer rights.