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NRA Reaches Deal To Pay Creditors' Ch. 11 Fees


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NRA Reaches Deal To Pay Creditors Ch. 11 Fees
Law360 (May 14, 2021, 5:05 PM EDT) Days after the National Rifle Association s Chapter 11 case was dismissed, the organization told a Texas bankruptcy judge Friday that it had reached an agreement with the official committee of unsecured creditors to handle payments of professional fees.
During a status conference requested by the committee, its attorney Louis Strubeck Jr. of Norton Rose Fulbright said the committee had pending fee applications in the case and would likely have at least a further request for payment of professional fees, which are typically paid for by the debtor in a Chapter 11 case. ....

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Texas judge dismisses NRA Chapter 11 bankruptcy petition


Attorney General Letitia James announced that her office has filed a lawsuit against the National Rifle Association (NRA). James is seeking to have the organization shutter its doors, bringing a close to its nearly 150-year old existence.
A Texas judge dismissed the National Rifle Association’s Chapter 11 bankruptcy petition on Tuesday, dealing a major setback to the gun rights group amid an ongoing legal fight in its home state of New York.
U.S. Bankruptcy Judge Harlin Hale’s ruling effectively scuttles the NRA’s push to relocate from New York to Texas. The judge determined the group did not file the bankruptcy petition in good faith and deemed the filing was a bid to avoid a state regulatory crackdown. ....

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NRA bankruptcy: Judge dismisses Chapter 11 case as 'not in good faith'


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A federal judge on Tuesday rejected the National Rifle Association s Chapter 11 bankruptcy filing, forcing the nonprofit to defend itself against the state of New York s lawsuit against the organization – a case that could result in the group s dissolution.
U.S. Bankruptcy Judge Harlin Hale of Dallas ruled that the pro-gun-rights group did not file its bankruptcy petition in good faith but instead did so to gain an unfair litigation advantage and to avoid a state regulatory scheme.
Those purposes are not a proper use of the bankruptcy code, the judge ruled.
Judge Hale also said he had concerns about the manner and secrecy in which the case was filed. The NRA is facing allegations of corruption, including misuse of member funds to support a lavish lifestyle for leaders, among them CEO Wayne LaPierre. ....

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Judge Denies NRA's Bankruptcy Petition, Slams Wayne LaPierre


Adam KlasfeldMay 11th, 2021, 3:54 pm
A federal bankruptcy judge rejected the National Rifle Association’s Chapter 11 petition on Tuesday, finding that the cash-flush gun group brought their case in bad faith to avoid a lawsuit by the New York attorney general which seeks to dissolve the organization.
“There are several aspects of this case that still trouble the Court, including the manner and secrecy in which authority to file the case was obtained in the first place, the related lack of express disclosure of the intended Chapter 11 case to the board of directors and most of the elected officers, the ability of the debtor to pay its debts, and the primary legal problem of the debtor being a state regulatory action,” U.S. Bankruptcy Judge ....

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