Treaty Energy Corporation Files for Damages in the Matter of 2-13-BK-11238
NEW ORLEANS, LA - Nov 14, 2013 - Treaty Energy Corporation (OTCQB: TECO) ( http://www.treatyenergy.com ), a growth-oriented international energy company, today filed a motion in the United States Bankruptcy Court in the Eastern District of Louisiana to reopen case number 2-13-BK-11238 in order to assess damages against the petitioners of a fraudulent involuntary chapter 7 bankruptcy petition filed against the Company. The Company at this time would like to notify all current shareholders what this action specifically means and what further actions will take place.
On May 7, 2013, the following individuals, David A. Hallin, Ronda Hyatt, Jeffery A. Morgan, Alexander Rasbury, David McCourtney and Mack Maxcey, all claimed Treaty Energy Corporation was engaging in allegations of fraud sought to force the Company into an involuntary chapter 7 bankruptcy.
On May 31, 2013, the Company responded to the allegations by filing a motion to dismiss the claims on the basis that none of the petitioner’s claims were the subject of a bona fide dispute. The Company further claimed that the petitioning creditors were using the bankruptcy process in bad faith and solely for the purpose of moving state court litigation to the bankruptcy court system.
Following the motion to dismiss, the petitioners moved to assign Reginald J. Laurent to the council of record on June 6, 2013. Prior to this action, the petitioners filed an involuntary claim pro se. In other words, none of the petitioning creditors had an attorney at the time of filing. It was only until the Company responded legally did the creditors get an attorney of record.
On June 12, 2013, the Bankruptcy Courts of the Eastern District of Louisiana held a hearing to determine the validity of the petitioner’s claims on why this involuntary bankruptcy should proceed. Only two individuals appeared at the hearing and only one took the stand to defend their claims under threat of perjury.
In less than one full day of trial, the Bankruptcy court found that not a single petitioner had a bona fide dispute or claim against the Company. The petitioner’s attorney of record, given the task of defending the claims of the petitioners not present, failed to provide cause on any of the non-appearing members. Several of the claims filed against the Company included non-payment, fraud and a stolen rig. Again, all of these claims were unfounded and statements against this claim are undeniably false based on the Order which dismissed the petitioner’s involuntary bankruptcy petition that was filed on May 7, 2013. Assertions have been made by several petitioners that the Company lost in this matter and that the petitioner's claims are still valid. Those assertions are unequivocally false based on the dismissal made at the hearing on June 12, 2013 and the closure of the case on June 25, 2013.
Unfortunately, the decision by these six individuals to file a fraudulent Bankruptcy claim against the Company has caused very real damages to both the Company and those who have invested in it. Fortunately, under 303(i) of the Bankruptcy Code and Bankruptcy Rule 9011, the Company is allowed to assert a claim against the Petitioning Creditors for costs, a reasonable attorney fee, damages sustained by the alleged debtor and punitive damages. The Company does not take the actions, or statements, made by the petitioners lightly and will be asking for costs, damages, attorney fees and punitive damages to be applied against the petitioning creditors.
The Company has made tremendous success recently in its operations in Texas to move towards long term success and profitability. Unfortunately, several of these individuals continue to harass the Company and spread false information in an attempt to harm the Company’s progress. The Company hopes that by filing this motion and having damages assessed against the petitioners, the Company will be able to move forward in its goal of making every shareholder’s investment worthwhile.
To read the Company’s motion to re-open the case, please visit: http://www.treatyenergy.com/sites/default/fil..._Claim.pdf
To read the judge’s motion to close the bankruptcy case that was filed on June 25, 2013 please visit: http://www.treatyenergy.com/sites/default/fil...20Case.pdf
On May 7, 2013, the following individuals, David A. Hallin, Ronda Hyatt, Jeffery A. Morgan, Alexander Rasbury, David McCourtney and Mack Maxcey, all claimed Treaty Energy Corporation was engaging in allegations of fraud sought to force the Company into an involuntary chapter 7 bankruptcy.
On May 31, 2013, the Company responded to the allegations by filing a motion to dismiss the claims on the basis that none of the petitioner’s claims were the subject of a bona fide dispute. The Company further claimed that the petitioning creditors were using the bankruptcy process in bad faith and solely for the purpose of moving state court litigation to the bankruptcy court system.
Following the motion to dismiss, the petitioners moved to assign Reginald J. Laurent to the council of record on June 6, 2013. Prior to this action, the petitioners filed an involuntary claim pro se. In other words, none of the petitioning creditors had an attorney at the time of filing. It was only until the Company responded legally did the creditors get an attorney of record.
On June 12, 2013, the Bankruptcy Courts of the Eastern District of Louisiana held a hearing to determine the validity of the petitioner’s claims on why this involuntary bankruptcy should proceed. Only two individuals appeared at the hearing and only one took the stand to defend their claims under threat of perjury.
In less than one full day of trial, the Bankruptcy court found that not a single petitioner had a bona fide dispute or claim against the Company. The petitioner’s attorney of record, given the task of defending the claims of the petitioners not present, failed to provide cause on any of the non-appearing members. Several of the claims filed against the Company included non-payment, fraud and a stolen rig. Again, all of these claims were unfounded and statements against this claim are undeniably false based on the Order which dismissed the petitioner’s involuntary bankruptcy petition that was filed on May 7, 2013. Assertions have been made by several petitioners that the Company lost in this matter and that the petitioner's claims are still valid. Those assertions are unequivocally false based on the dismissal made at the hearing on June 12, 2013 and the closure of the case on June 25, 2013.
Unfortunately, the decision by these six individuals to file a fraudulent Bankruptcy claim against the Company has caused very real damages to both the Company and those who have invested in it. Fortunately, under 303(i) of the Bankruptcy Code and Bankruptcy Rule 9011, the Company is allowed to assert a claim against the Petitioning Creditors for costs, a reasonable attorney fee, damages sustained by the alleged debtor and punitive damages. The Company does not take the actions, or statements, made by the petitioners lightly and will be asking for costs, damages, attorney fees and punitive damages to be applied against the petitioning creditors.
The Company has made tremendous success recently in its operations in Texas to move towards long term success and profitability. Unfortunately, several of these individuals continue to harass the Company and spread false information in an attempt to harm the Company’s progress. The Company hopes that by filing this motion and having damages assessed against the petitioners, the Company will be able to move forward in its goal of making every shareholder’s investment worthwhile.
To read the Company’s motion to re-open the case, please visit: http://www.treatyenergy.com/sites/default/fil..._Claim.pdf
To read the judge’s motion to close the bankruptcy case that was filed on June 25, 2013 please visit: http://www.treatyenergy.com/sites/default/fil...20Case.pdf
Contact
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
Fax: 504-324-0844
Company Links
Website: http://www.treatyenergy.com
Facebook: https://www.facebook.com/TreatyEnergyCorp
Twitter: https://twitter.com/TreatyEnergyCo
About Treaty Energy Corporation
Treaty, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have “proven but undeveloped reserves” at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTCQB, the marketplace for companies that are current in their SEC reporting requirements. Investors can find Real-Time quotes and market information for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
Forward-Looking Statements
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company’s filings with the Securities and Exchange Commission, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
Treaty Energy Corporation
Investor Relations
investors@treatyenergy.com
Tel: 504-301-4475
Fax: 504-324-0844
Company Links
Website: http://www.treatyenergy.com
Facebook: https://www.facebook.com/TreatyEnergyCorp
Twitter: https://twitter.com/TreatyEnergyCo
About Treaty Energy Corporation
Treaty, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases which have “proven but undeveloped reserves” at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows Treaty to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.
Treaty Energy Corporation (TECO) trades on the OTCQB, the marketplace for companies that are current in their SEC reporting requirements. Investors can find Real-Time quotes and market information for Treaty Energy at http://www.otcmarkets.com/stock/TECO/quote
Forward-Looking Statements
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company’s filings with the Securities and Exchange Commission, including Forms 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.
