Wednesday, February 07, 2007

PL Bankruptcy Trial to Move to Oakland?

As reported in the Eureka Distorter, the California Attorney Generals office is trying to get a change of venue. In a clearly strategic move, Charles Hurwitz created Scotia Development LLC and based it in Corpus Christi very near to the courthouse so that the fight would be on his home turf. The AG says thats not cool and that the court proceedings need to be in California where the majority of interested parties are.

Some interesting paragraphs from the article-

Following a review of the pleadings filed in this case, the Attorney General’s Office’s indicated that Scotia Development has no significant business activity or purpose and was created to provide PALCO’s affiliate companies with “a hook” to file in the Texas court rather than in California.

“The debtor’s actions in manufacturing venue constitutes bad faith and blatant forum shopping, which should not be countenanced by this court,” the court filing states. “Allowing venue to remain in this court will undermine the integrity of the bankruptcy laws and impose severe burdens on creditors and other parties in interest to assert and protect their claims against these debtors.”

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