SAN FRANCISCO — Heller Ehrman’s creditors committee is preparing to sue the firm’s banks to negate their secured creditor status, a lawyer for the committee told a bankruptcy judge on Wednesday.
The second hearing of the defunct firm’s bankruptcy case had barely begun before Heller’s attorneys were again arguing with the banks over cash available for settlements with its major landlords. Heller lawyers asserted their reluctance to hand the banks another dime, claiming they are already overcollateralized, while the banks’ lawyers repeated that they are still owed money.
