On August 12, 2016, petitioning creditors Beal Bank USA and CLMG Corp. filed an involuntary chapter 11 bankruptcy petition against Bennu Titan LLC (f/k/a ATP Titan LLC). The involuntary debtor is affiliated with Bennu Oil & Gas, a deep water oil exploration firm based in Harris County, Texas.
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.
The involuntary bankruptcy petition was filed in the United States Bankruptcy Court for the District of Delaware, and has been assigned to Judge Laurie Selber Silverstein, Case No. 16-11870.
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.