An AIG derivatives trading unit defeated former executives’ efforts to toss its Chapter 11 case over their claims that the company is using bankruptcy to evade a $640 million suit over unpaid bonuses.
AIG Financial Products Corp., which suffered massive losses during the 2008 financial crisis, didn’t file Chapter 11 in bad faith, as the executive group alleged, and faces “sufficient financial distress to warrant a bankruptcy filing,” Judge Mary F. Walrath of the US Bankruptcy Court for the District of Delaware ruled Wednesday.
A group of about 50 former executives accused the AIG subsidiary of filing for bankruptcy to ...
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