Bankrupt lender American Home Mortgage has won a bid to cancel its deferred compensation plans after Bankruptcy Judge Christopher Sontchi approved a motion calling for the plan’s assets to be returned to the company, Bankruptcy Law360 reported yesterday. Several AHM employees had objected to the company’s request to cancel the plan, claiming that they had not been informed that the plan would be canceled if the company became insolvent. However, Judge Sontchi said that canceling the plan was in the best interest of all parties involved, ruling that “the relief requested in the motion is in the best interests of the debtors, their estates and creditors.”
See Also: Bankruptcy Phoenix
In an effort to wind down the consolidated ERISA class action pending against the company, bankrupt auto parts maker Delphi Corporation has amended its settlement agreement, Bankruptcy Law360 reported on Friday. Delphi amended the settlement agreement last Thursday to clarify that creditor State Street Bank and Trust Company, which had objected to the settlement, should not be included with the settling parties referred to in the document. While the settlement will permanently bar plaintiffs from asserting similar claims against any of the defendants named in the suit, the amended document reflects that State Street’s formal objection, as well as its status as a non-settling defendant in the suit, exempts the company from this provision.
Bankruptcy New York
Bankruptcy Judge Brendan L. Shannon approved Global Power Equipment Group Inc.’s disclosure statement on Wednesday, setting the stage for the company to exit from bankruptcy by the end of 2007, Bankruptcy Law360 reported yesterday. Judge Shannon also entered an order approving the plan support agreement between the debtors, their unsecured creditors’ and equity security-holders’ committees, and Global Power’s 4.25 percent convertible senior subordinated noteholders. Global Power is now soliciting support for its reorganization plan, which is scheduled to come up for a confirmation hearing on Dec. 20.
