An equity holder of bankrupt identity verification software maker Jumio Inc. objected to the company’s Chapter 11 plan Tuesday, saying releases granted to directors let them off the hook for allegedly driving the firm into insolvency.
In its objection, Bloso Investments Ltd. said the global release that forms the backbone of the restructuring plan provides releases to former directors and equity holders even as investigations continue into the pre-bankruptcy behavior of the individuals in question. Before its petition in March, Jumio was forced to restate its financials for the prior two years, and questions about the secondary sale of company stock by directors are still being resolved.