A bankruptcy judge in Maryland has granted the U.S. Department of Justice’s request that a trustee be appointed to manage the liquidation of Thornburg Mortgage, Reuters reports. The Justice Department went to court after it discovered that former executives of the lender, now known as TMST, were using staff and equipment in preparation for a start-up venture.
The company argued against the trustee appointment, stating in court documents that the former executives who had been handling the liquidation have left, thus eliminating any conflicts.
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