DJ Bankruptcy Plan of Asset Manager Medley Now In Judge's Hands -- Market Talk
1608 ET - The judge hearing arguments into whether to approve the bankruptcy plan of asset manager Medley LLC said she would take the matter under advisement. The Securities and Exchange Commission opposes the chapter 11 plan, alleging that "conflict-ridden insiders," have diverted money to an entity not part of the bankruptcy, to the detriment of "unsophisticated, mom-and-pop," bond investors. Medley said if the plan isn't confirmed, it could convert to chapter 7 liquidation, with creditors recouping even less. "This plan isn't perfect but plans generally aren't perfect," Medley lawyer Jeffrey Waxman said. Two creditor groups that won't recoup all of what they're owed still support the plan, he said. (becky.yerak@wsj.com ; @beckyyerak)
(END) Dow Jones Newswires
October 06, 2021 16:08 ET (20:08 GMT)
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