New Court for American Continental Case: U.S....

New Court for American Continental Case: U.S. District Judge Charles Hardy agreed to oversee portions of American Continental Corp.’s bankruptcy, citing a conflict in federal laws were the case to have been left wholly with the Bankruptcy Court. The conflict stems from the issue of whether Chapter 11 laws under the U.S. Bankruptcy Code supersede or are subject to Title 12 laws, which govern banking institutions, said Phillip Mitchell, an attorney for several secured creditors. Hardy’s decision moves the bankruptcy cases involving the Phoenix-based holding company and 11 subsidiaries of Lincoln Savings & Loan in Irvine to federal court from Bankruptcy Court.