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DJ Bankruptcy 'Scholars' Seek Voice In Tousa Fraudulent Loan Appeal

Publication Date: 
May 20, 2011
Source: 
Morningstar
Author: 
Patrick Fitzgerald

Professor G. Marcus Cole is mentioned in this Morningstar article by Patrick Fitzgerald as one of the scholars who believe a bankruptcy judge in Florida was incorrect when he reversed a bankruptcy court decision in a closely watched court case over hundreds of millions of dollars loans involving homebuilder Tousa Inc. (TOUSQ) before its collapse in 2008.

A group of prominent bankruptcy academics, including law professors from Harvard, Columbia and the University of Chicago, says bankruptcy doesn't have to mean a death sentence and a recent federal court ruling erred by assuming it does.

The group of self-styled "bankruptcy scholars," a collection of more than a dozen law and business school professors, says a U.S. District Court judge was "incorrect" when he reversed a bankruptcy court decision in a closely watched court case over hundreds of millions of dollars loans involving Florida homebuilder Tousa Inc. (TOUSQ) before its collapse in 2008.

The scholars, whose number includes the University of Chicago's Douglas Baird, Harvard University's George Triantis and Columbia University's Ed Morrison as well as Stanford University's G. Marcus Cole and Georgetown University's Adam Levitin, say they have an interest in ensuring the costs and benefits of bankruptcy are "appropriately considered" by judges.