IFS Securities’ Liquidation Plan Gets Court Nod Despite Releases

Atlanta broker-dealer IFS Securities Inc. won approval of its liquidation plan less than five months after filing for bankruptcy triggered by an employee’s unauthorized fixed income trade.

Judge Lisa Ritchey Craig of the U.S. Bankruptcy Court for the Northern District of Georgia confirmed the Chapter 11 plan Thursday after overruling objections from the U.S. Trustee’s Office, the Justice Department’s bankruptcy watchdog.

The U.S. Trustee argued that the plan released too many company officers, directors, and affiliates from liability.

“This case has been incredibly contentious and heavily litigated,” Craig said at a hearing. “The court believes the expeditious finality this plan ...