BANKING & FINANCE - July 17, 1991
From Times Staff and Wire Reports
American Continental Stays Actions: The former parent company of failed Lincoln Savings & Loan agreed to halt, for the moment, its effort to recoup $24.5 million it is seeking from investors who were paid interest or principal on their bonds during the 90 days preceding the company’s April 13, 1989, bankruptcy filing. American Continental had been sending out notices of lawsuits it had filed to recover the so-called preference payments, a common practice in bankruptcies and specifically allowed under the company’s court-approved liquidation plan. Nearly 90% of the bondholders sued were investors who were completely paid off during the prefiling period.
