NRA Bankruptcy A No Go.
A Federal Judge in Texas dismissed a Bankruptcy proceeding as nothing more than a diversionary tactic. (AP News)
“The Court believes the NRA’s purpose in filing bankruptcy is less like a traditional bankruptcy case in which a debtor is faced with financial difficulties or a judgment that it cannot satisfy and more like cases in which courts have found bankruptcy was filed to gain an unfair advantage in litigation or to avoid a regulatory scheme,” Hale wrote.
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The Bankruptcy petition for relief file by the the NRA was dismissed as lacking good faith. As a Bankruptcy practitioner I have come across the ‘good faith’ requirement a few times in the past to say the least. Well, New York’s indomitable Attorney General will now be able to proceed with litigation against the organization and all of alleged the actionable malfeasance. The Bankruptcy Code is meant to relieve Debtors of their financial strain and not to be misused by ‘bad faith’ actors seeking to shield themselves when no legitimate reason to do so exists.
