On December 22, 2015, an involuntary bankruptcy petition was filed against Metrogate, LLC, in the United States District Court for the District of Delaware. The petitioning creditors are various Taberna Preferred Funding entities.
For a link to a brief post discussing involuntary bankruptcies in general, click here. Under Section 303 of the Bankruptcy Code, a debtor can be “forced” into an involuntary bankruptcy. 11 U.S.C.§ 303(b)(1). If a company has 12 or more creditors, an involuntary petition requires three or more creditors whose claims are not contingent as to liability or subject to a bona fide dispute as to either liability or amount to file the petition.
According to part 13 of the Metrogate involuntary petition, the petitioning creditors are owed in excess of $45 million above the value of any lien, related to junior subordinated notes.
Carl D. Neff is a partner with the law firm of Fox Rothschild LLP. You can reach Carl at (302) 622-4272 or at email@example.com.