Now in Legal Rebels:
Posted Aug 29, 2007 06:21 pm CDT
A federal judge in New York has overturned a ruling in Enron bankruptcy litigation that had caused consternation on Wall Street.
U.S. District Judge Shira Scheindlin ruled that good-faith purchasers of claims against bankrupt companies should not be penalized under bankruptcy laws, the Wall Street Journal reports (sub. req.).
A contrary ruling by a bankruptcy judge “threatened to wreak havoc on the markets for distressed debt,” she wrote.