FleetBoston to pay $2.4 million in bankruptcy ruling

FleetBoston Financial Corp. was
ordered to pay more than $2.4 million for violating bankruptcy
rules that prevent creditors from acting on a debtors’ assets, the
Boston Herald reported, citing a bankruptcy judge’s ruling.
Assets of Bankvest Capital Corp., an equipment-leasing
company that went into Chapter 11 bankruptcy in 2000, were
protected by an automatic stay, Judge Joel Rosenthal wrote in his
order, the paper said.



Between Dec. 1999, when Bankvest ended leasing operations
and converted to voluntary bankruptcy on Jan. 25, 2000, Fleet got
$2.2 million in proceeds from a lease portfolio sale and from
payments, the Herald said, citing court papers. Fleet used that to
pay down Bankvest loans, the paper said.



Boston-based Fleet is appealing the decision, the paper said,
citing an unidentified spokesman. Fleet claimed Bankvest owed it
$15.6 million, the paper said, citing court papers.



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