Consider this familiar fact pattern: A small group of bondholders believe that they were misled by a debtor's management about the company's financial situation shortly before the company filed for bankruptcy, and no class action has yet been filed for securities fraud or related claims.
Can the Claims of Individual Creditors Be Assigned to a Litigation Trust?
This article explores the history, the more recent case law and the open issues, which could be important in structuring a plan in future cases, of securities claims that belong to the bondholders individually, not to the company.
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