The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.
Even though the debtor was no longer in business, a Medicaid fraud suit was not subject to the automatic stay and thus served as a deterrent to others.
Judge Grabill would have given commercial creditors either their own committee or special counsel given the different interests of sexual abuse claimants.
The finding of proper notice in a confirmation order satisfies the debtor’s burden of proving notice by publication to creditors with future claims, even in the absence of a trust for future creditors, Houston judge says.