Linqto Judge Extends Cease and Desist Against Customer’s Plan

Linqto Texas LLC’s bankruptcy judge extended a cease and desist order against a customer that the collapsed fintech startup said has been circulating an unauthorized reorganization plan.

Judge Alfredo Perez rejected Linqto customer Rob Cunningham’s contention that he only shared, and didn’t create, an unapproved bankruptcy plan. The judge said the plan was still a “clear violation” of the law at a hearing held Tuesday in the US Bankruptcy Court for the Southern District of Texas.

Bankruptcy law affords debtors an exclusive period to pursue their own Chapter 11 plan, with competing proposals not permitted during that time.

Cunningham told ...