First Magnus ordered to file amended disclosure statement by Jan. 2 to detail insider transfers

By Caroline Salls

Pittsburgh, Dec. 17 - First Magnus Financial Corp. has been ordered to file an amended disclosure statement for its plan of liquidation by Jan. 2 in response to an objection raised by WNS North America on transfers made to insiders, according to a Friday filing with the U.S. Bankruptcy Court for the District of Arizona.

According to the filing, the amended disclosure statement must "rigorously detail all pre-petition insider transactions" that were made within the two years before First Magnus filed for bankruptcy on Aug. 21.

Judge James M. Marlar said in his ruling that, if the amended statement passes his scrutiny, he will schedule a plan confirmation hearing for Feb. 1.

First Magnus, a Tucson, Ariz., mortgage loan originator, filed for bankruptcy on Aug. 21. Its Chapter 11 case number is 07-01578.

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