News Article
Frank Monaco Discusses Bankruptcy Litigation Trusts in National Article
January 5, 2011
An article in the January 4th edition of the Dow Jones Daily Bankruptcy Review features comments from Womble Carlyle bankruptcy attorney Frank Monaco.
The article, entitled “Bankruptcy Litigation Trusts May Be ‘Lottery Ticket’ for Creditors,” details how creditors are using litigation trusts as a vehicle to pursue claims against executives, lenders and suppliers of companies in bankruptcy proceedings. The article focuses on the Tribune Company’s current bankruptcy, in which creditors are employing the bankruptcy litigation trust tactic.
However, Monaco told the Dow Jones Daily Bankruptcy Review that plaintiffs who employ litigation trusts must be careful in which cases they pursue.
“It can be a hard choice to go after a really big financial institution, knowing that they'll have deep pockets to defend themselves,” Monaco said. “It's possible to eat up all the money in the estate and end up with nothing at the end of the rainbow.”
This document is intended as an informational reminder and does not constitute legal advice. If you have any questions or would like to discuss a particular situation, please contact Womble Carlyle Sandridge & Rice, LLP. The purpose of this article is to provide general information about significant legal developments and should not be construed as legal advice on any specific facts and circumstances.