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ABI Journal

303

Bankruptcy Code
Bankruptcy Code

Equity Can’t Alter the Three Petitioning Creditors Requirement, First Circuit Rules

Even if a debtor has committed fraud, at least three creditors still must join an involuntary petition if the debtor has 12 or more creditors.

Ninth Circuit Bars Third Parties from Seeking Damages for Dismissal of an ‘Involuntary’

If the involuntary corporate debtor was deadlocked and unable to act, the dissenter would have permitted a 50% shareholder to seek damage for dismissal of the petition.

Bankruptcy Code
Be Wary of Using Involuntary Bankruptcy as a Collection Tool

May 2019

Bankruptcy Code

New York Judge Dismisses an Involuntary Petition Against a CDO

Judge Vyskocil denounces an involuntary petition as an attempt by senior, fully secured noteholders to profit at the expense of subordinate noteholders.