Justice Department Challenges Prison Medical Firm Bankruptcy (1)

The Justice Department’s bankruptcy watchdog joined a group of prisoners trying to toss a prison medical company’s bankruptcy, challenging a proposed Chapter 11 plan that offers legal protections to insiders.

The US Trustee joined a tort claimants committee’s objection to Tehum Care Services Inc.'s proposed plan Friday, and in a separate filing asked the US Bankruptcy Court for the Southern District of Texas to dismiss the Chapter 11 case. The US Trustee’s filings came after Sen. Elizabeth Warren (D-Mass.) earlier this month asked the bankruptcy watchdog to consider joining the tort committee’s effort to end the bankruptcy.

Tehum’s $55 ...