People's Choice creditors committee receives OK to pursue claims against company's management

By Reshmi Basu

New York, Sept. 17 - People's Choice Home Loan, Inc.'s official committee of unsecured creditors received court approval to pursue claims on behalf of the company's estate, including filing claims against members of management, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of California.

As previously reported, the creditors committee is investigating whether the estate holds any claims against the company's directors and officers. According to the Sept. 7 motion, consultants have estimated that there is more than $100 million in claims against the company stemming from failed loans.

In addition, the creditors obtained approval to notify the company's insurers of any potential claims that may arise on or before Oct. 3, the expiration date of the insurance policies for management.

People's Choice, an Irvine, Calif., non-prime mortgage lender, filed for bankruptcy on March 20, 2007. Its Chapter 11 case number is 07-10765.

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