Premier Bankruptcy News

The Indianapolis Business Journal shows some problems with the Premier Chapter 11 Bankruptcy case. With Trustee to intervene in Premier bankruptcy, the story highlights some problems of many Chapter 11 case. Albeit, this case seems an extreme example:

"The U.S. Trustee's office plans to file a motion to intervene in a Chapter 11 bankruptcy case brought by Premier Properties USA Inc. because the development firm is insolvent."

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Two court hearings last week made it increasingly clear that Premier is in no position to work its way out of bankruptcy: None of its employees have been paid for at least eight weeks, and the firm's operating account balance has fallen to $14.33.

U.S. Bankruptcy Court Judge Basil H. Lorch III said he will consider Trustee Mark Drummond's request to convert or dismiss the Chapter 11 filing at a hearing May 30. Drummond had not filed the request as of this morning.

Creditors familiar only with Chapter 7 bankruptcies would do well to consult with their lawyers when they receive notice of a Chapter 11 bankruptcy.