vranasaurus
New member
The reason to file bankruptcy exists when the potential liabilities exceed the assets. This allows a bankruptcy court to supervise the process of dissolution or reorganization. Once bankruptcy is filed there is usually a stay entered which prohibits state court litigation from continuing. I don’t practice bankruptcy law so I’m not that up to date on how a stay would work in this instance.
Keep in mind the bankruptcy court has a lot of power to modify debts, restructure organizations, and otherwise right the ship. If the ship can’t be righted then usually there will be a liquidation with assets being sold to satisfy creditors. The benefit of going into bankruptcy court is to essentially make it about money and only about money. The bankruptcy court is unlikely to care about the other relief sought by the state of New York and will simply relegate it to being another creditor who will get pennies on the dollar of its claim.
One of the most valuable assets the NRA has is its names and trademarks. A liquidation could allow someone with anti gun views to purchase the name and trademarks of the NRA and use it for an organization that supports gun control.
The bankruptcy filing seems like a way to get this all under control without having to litigate in state court. The NY AG can oppose the bankruptcy but it’s pretty hard for a creditor to get a bankruptcy dismissed. If the board of directors is a problem the bankruptcy trustee and court could potentially appoint new members and a new executive director. The only thing I can predict in this case are more legal fees.
Keep in mind the bankruptcy court has a lot of power to modify debts, restructure organizations, and otherwise right the ship. If the ship can’t be righted then usually there will be a liquidation with assets being sold to satisfy creditors. The benefit of going into bankruptcy court is to essentially make it about money and only about money. The bankruptcy court is unlikely to care about the other relief sought by the state of New York and will simply relegate it to being another creditor who will get pennies on the dollar of its claim.
One of the most valuable assets the NRA has is its names and trademarks. A liquidation could allow someone with anti gun views to purchase the name and trademarks of the NRA and use it for an organization that supports gun control.
The bankruptcy filing seems like a way to get this all under control without having to litigate in state court. The NY AG can oppose the bankruptcy but it’s pretty hard for a creditor to get a bankruptcy dismissed. If the board of directors is a problem the bankruptcy trustee and court could potentially appoint new members and a new executive director. The only thing I can predict in this case are more legal fees.