(The Center Square) â A U.S. Bankruptcy Judge in Texas on Tuesday dismissed an attempt by the National Rifle Association to file for Chapter 11 protection and avoid a lawsuit filed by New York State Attorney General Letitia James.
In a 38-page document, U.S. Bankruptcy Judge Harlin DeWayne Hale noted that legal precedent recognizes bankruptcy cases filed to obtain âan unfair litigation advantageâ are not good-faith efforts to reorganize.
âThere was a general consensus among the witnesses that, as the NRA has consistently represented to the Court and to its members, the NRA is in its strongest financial condition in years and intends to pay creditors all allowed claims in full,â Hale wrote.
February 12, 2021 - 7:40 PM
DALLAS - Attorneys for the state of New York asked a bankruptcy judge Friday to throw out the National Rifle Associationâs bankruptcy case, saying the case was filed in bad faith.
In a 41-page brief filed in the bankruptcy court in Dallas, New Yorkâs attorneys asked U.S. Bankruptcy Judge Harlin DeWayne Hale to appoint a Chapter 11 trustee if outright dismissal was denied.
The state asserts that the NRA filed the bankruptcy petition while claiming to be solvent and âin its strongest financial condition in years,â according to the petition.
The NRA filed for Chapter 11 bankruptcy protection after the New York attorney general sued to seek the organizationâs dissolution. It also announced plans to move its headquarters from New York and incorporate in gun-friendly Texas.
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New York seeks dismissal of National Rifle Association bankruptcy case
FILE PHOTO: Remington firearms sit on a rack at the National Rifle Association s (NRA) annual meeting, in Indianapolis, Indiana, US, April 28, 2019. REUTERS/Bryan Woolston
13 Feb 2021 08:54PM Share this content
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DALLAS: Attorneys for the state of New York asked a bankruptcy judge Friday (Feb 12) to throw out the National Rifle Association’s bankruptcy case, saying the case was filed in bad faith.
In a 41-page brief filed in the bankruptcy court in Dallas, New York’s attorneys asked US Bankruptcy Judge Harlin DeWayne Hale to appoint a Chapter 11 trustee if outright dismissal was denied.