I had 3 out of 5 posts deleted on iFib today. Lets see if the following post remains or is deleted;
panther2
Thursday, June 20, 2013 1:27:11 AM
Re: SCHNAUSER post# 60844 Post # of 60862
The bankruptcy petitioners who attempted to force Treaty Energy into Involuntary Bankruptcy should have consulted with and/or taken the advice of a competent attorney specializing in these types of cases. I don't think any publicly owned company/stock is going to allow frivolous, unsubstantiated allegations that cause a major disruption to business operations and cause a financial burden to defend will just let it go unchecked without taking advantage of the rules in place to protect debtors from petitioners using poor judgement or acting in bad faith.
I believe Treaty Energy will take advantage of the applicable Federal Bankruptcy Court rules set forth in the following excerpts;
The “bankruptcy card” may be played by a potential creditor as well as by a potential debtor. In order to threaten to play the card, the creditor must understand the mechanics and consequences of 11 U.S.C. § 303, the provision of the Title 11 of the United States Code (the “Bankruptcy Code”) dealing with involuntary petitions.
If the alleged debtor contests the involuntary petition and the court agrees with the alleged debtor and dismisses the case, then § 303(i)(1) of the Bankruptcy Code permits the court to require the petitioning creditors to pay the alleged debtor’s costs and reasonable attorney’s fee. The court may order such payment even without an explicit request or separately filed motion. In re Tobacco Road. Associates., LP, 2007 U.S. Dist. LEXIS 22990 (E.D. Pa . March 30, 2007). The court also may order such payment even if the petitioning creditors did not act in bad faith. Id. “The Court also has discretion, however, to deny fees and costs .” In re DSC, Ltd., 387 B.R. 174 (Bankr. E.D. Mich. 2008). Nevertheless, many courts have stated that “any petitioning creditor in an involuntary case . . . should expect to pay the debtor’s attorney’s fees and costs if the petition is dismissed,” In re Kidwell, 158 B.R.
panther2
Thursday, June 20, 2013 1:27:11 AM
Re: SCHNAUSER post# 60844 Post # of 60862
The bankruptcy petitioners who attempted to force Treaty Energy into Involuntary Bankruptcy should have consulted with and/or taken the advice of a competent attorney specializing in these types of cases. I don't think any publicly owned company/stock is going to allow frivolous, unsubstantiated allegations that cause a major disruption to business operations and cause a financial burden to defend will just let it go unchecked without taking advantage of the rules in place to protect debtors from petitioners using poor judgement or acting in bad faith.
I believe Treaty Energy will take advantage of the applicable Federal Bankruptcy Court rules set forth in the following excerpts;
The “bankruptcy card” may be played by a potential creditor as well as by a potential debtor. In order to threaten to play the card, the creditor must understand the mechanics and consequences of 11 U.S.C. § 303, the provision of the Title 11 of the United States Code (the “Bankruptcy Code”) dealing with involuntary petitions.
If the alleged debtor contests the involuntary petition and the court agrees with the alleged debtor and dismisses the case, then § 303(i)(1) of the Bankruptcy Code permits the court to require the petitioning creditors to pay the alleged debtor’s costs and reasonable attorney’s fee. The court may order such payment even without an explicit request or separately filed motion. In re Tobacco Road. Associates., LP, 2007 U.S. Dist. LEXIS 22990 (E.D. Pa . March 30, 2007). The court also may order such payment even if the petitioning creditors did not act in bad faith. Id. “The Court also has discretion, however, to deny fees and costs .” In re DSC, Ltd., 387 B.R. 174 (Bankr. E.D. Mich. 2008). Nevertheless, many courts have stated that “any petitioning creditor in an involuntary case . . . should expect to pay the debtor’s attorney’s fees and costs if the petition is dismissed,” In re Kidwell, 158 B.R.
