This has got to be one of the longest-running bankruptcy cases . . . ever.
It was filed on July 17, 1928, and it is being wound-down now.
A recent Bankruptcy Court Order in that case (entered January 22, 2025) addresses the question of whether $422,857.12 of unclaimed funds should escheat to the U.S. Government or to various states.
The Bankruptcy Court rules in favor of the U.S. Government, based on “the 1956 amendment to Section 66” of the Federal Bankruptcy Act of 1898.
- The opinion is In re Yellow Poplar Lumber Co., Case No. 17-70882, Virginia (Western District) Bankruptcy Court (decided January 22, 2025; Doc. 356).
97 Years of Case Progression
Here’s how the In re Yellow Poplar Lumber Co. bankruptcy case lasts for 97 years.
On July 17, 1928, an involuntary bankruptcy petition is filed against Debtor in the U.S. District Court for South Carolina, and Debtor is adjudged a bankrupt, Debtor’s assets are liquidated (including various parcels of real estate), and Debtor’s bankruptcy case is closed in 1931.
Eighty-two years later, on April 3, 2013, plaintiffs file suit in a Virginia state court to determine ownership of gas estates in certain parcels of land that were deeded away in 1929 by Debtor’s bankruptcy trustee. The case is transferred to federal district court.
On December 10, 2013, a Guardian ad Litem is appointed to act on behalf of Debtor’s unknown successors.
Debtor’s bankruptcy is reopened and ends up in the Virginia (Western District) Bankruptcy Court—and a Chapter 7 bankruptcy trustee is appointed.
On January 25, 2017, a few days before a trial is to begin, the parties reach a settlement of the ownership claims.
On February 8, 2017, the Chapter 7 Trustee files a Motion for approval of the settlement.
On May 12, 2017, after publication of notice and a hearing, without any objection being filed, the Bankruptcy Court approves the settlement and quiets title to the gas estates.
From the settlement, Debtor’s reopened bankruptcy estate has $3,056,148.61 to be disbursed.
After payment of administrative claims and distribution of funds to known parties, $422,857.12 of unclaimed funds remain. And it is these funds that the Bankruptcy Court determines belong to the U.S. Government, by escheat, over competing escheat claims of various states.
Conclusion
It’s an anomaly: a bankruptcy case that lasts for 97 years.
But it does happen. And In re Yellow Poplar Lumber Co. is an Exhibit A, even if only 17 of those 97 years have an actual court proceeding pending: 1928 to 1931 and 2013 to 2025.
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