Vermont Bankruptcy Court Clarifies “Separate Transaction” and Dismisses Involuntary Petition

On Aug. 21, 2021, Lily Transportation Corp., Bernardino’s Bakery Inc., Ryder Truck Rental Inc. and Hillcrest Foods Inc. (collectively, the petitioning creditors) filed an involuntary bankruptcy petition against Koffee Kup, but the U.S. Bankruptcy Court for the District of Vermont ultimately dismissed that involuntary petition in In re Koffee Kup Bakery Inc., No. 21-10168, 2022 WL 141516 (Bankr. D. Vt. Jan. 14, 2022).