Some of the biggest players in ABS and the fixed-income sector - including the Bond Market Association, MBNA, GE Capital Corp., Residential Funding Corp., Consumer Mortgage Coalition and a slew of steel companies - have jointly filed an amicus curiae (friend-of-the-court) brief in the pending LTV Steel bankruptcy court case, hoping to stave off a court decision that can potentially call into question one of the most basic premises underpinning the concept of securitization.

Investors and others are challenging LTV in an Ohio bankruptcy court over the company's decision to divert receivables away from an SPV in order to pay its workers after it filed for chapter 11 bankruptcy in late December 2000. The cash was directed back into the company, therefore calling into question whether investors' securities were actually bankruptcy remote. Investors claim that LTV sold the receivables to the SPV in a true sale.

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