DBSI files for bankruptcy protection
By Vanessa BrownBOISE - DBSI decided not to way any longer. As reported last week, DBSI planned to file for Chapter 11 bankruptcy sometime this week. But one click to the company's website shows executives decided to move along with the legal process - with a blog explaining the company's decision. The company says it filed for bankruptcy protection on Monday. "We are hopeful that we will receive the cooperation of our critical creditor constituencies to permit DBSI the opportunity to complete an orderly restructuring that we believe will provide maximum value for all," said Doug Swenson, president and chief executive officer of DBSI. On top of the bankruptcy news, the company, which calls itself one of the nation's leading real estate investment companies, is facing a $2 billion class action lawsuit accusing DBSI of investment and bank fraud and violating the Idaho Securities Act. It claims the illegal profits of $500 million. "This case is extremely serious. It goes hand in hand with the sub-prime mortgage disaster, the banking debacle, and the wall street melt down. It's a situation involving people in positions of power that have taken advantage of simple investors," said Paul Mangiantini, one of the attorneys for the plaintiffs. The company has called the allegations made in the lawsuit has being "without merit" and plans to "vigorously defend the lawsuit." |
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