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Home›Forum committee›Lear Capital balks at Ch. 11 Customer Complaints Commission

Lear Capital balks at Ch. 11 Customer Complaints Commission

By Corrine K. Thomas
May 4, 2022
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By Vince Sullivan (May 4, 2022, 7:53 p.m. EDT) — Metals and coin investment firm Lear Capital told a Delaware judge on Wednesday that three clients arguing fraud allegations against the firm did not understand the impact of requesting the formation of a creditors’ committee in the Chapter 11 matter and that such an appointment is not warranted in the proceeding.

In a virtual hearing, attorney for debtor Jeffrey Waxman of Morris James LLP said depositions from the three movers on Tuesday showed they did not understand the implications a committee order would have on Lear’s estate . Bankruptcy proceeds under Chapter 11 Subchapter V, which provides a simplified procedure…

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