Pacific Northwest An attorney for creditors of Metropolitan Mortgage & Securities blasted the bankrupt Spokane company's newest reorganization...

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Pacific Northwest

Metropolitan Mortgage

An attorney for creditors of Metropolitan Mortgage & Securities blasted the bankrupt Spokane company’s newest reorganization plan, saying it fails to give creditors some control over the costs of liquidating the remaining assets.

“The debtors have essentially eliminated any real oversight role by the creditors,” complained attorney P.J. Grabicki of Spokane yesterday.

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The liquidation costs are expected to run into the millions of dollars for attorney fees and other expenses.

A Met Mortgage spokesman could not be reached for comment.

The plan, filed late last week, would liquidate the companies’ remaining assets and distribute them to creditors through two new trusts.

Grabicki said that creditors agree that liquidation is the best route for recovering some of their investments, but that it’s not clear whether they will ratify the current plan. A vote date has not been set.

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Compiled from The Associated Press