August 15, 2020

Volume X, Number 228

August 14, 2020

Subscribe to Latest Legal News and Analysis

August 13, 2020

Subscribe to Latest Legal News and Analysis

August 12, 2020

Subscribe to Latest Legal News and Analysis

Involuntary Bankruptcy Petitions Dismissed Where Alter Ego Status Was Disputed

The United States Bankruptcy Court for the Southern District of New York granted motions to dismiss involuntary Chapter 7 petitions filed against TPG Troy LLC and T3 Troy LLC (the Troy Entities). Petitioners filed numerous actions against the Troy Entities in the United States and Europe to recover money they alleged was owed in connection with the default of payment-in-kind and subordinated notes.

Petitioners alleged that the Troy Entities were the alter egos of the note issuers, which, they argued, was sufficient to establish that there was not a bona fide dispute as to liability or amount, as required for an involuntary bankruptcy petition. In response, the Troy Entities argued that they had no contractual relationship with the issuers, and that Petitioners failed to allege facts sufficient to meet the “heavy burden” of establishing an alter ego relationship.

Based on the pleadings and decisions of the other cases in which the Petitioners have alleged alter ego liability against the Troy Entities as well as the facts presented in this case, the Bankruptcy Court determined that there was a “bona fide” dispute as to whether the Troy Entities were alter egos of the issuers and, accordingly, dismissed the involuntary bankruptcy petitions.

In re TPG Troy, LLC, Nos. 12-14965(MG), 12-14966(MF) (S.D.N.Y. May 9, 2013)

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume III, Number 138

TRENDING LEGAL ANALYSIS


About this Author

Our Corporate Practice provides sophisticated transactional representation and business counseling to national and global companies in a wide range of industries. Attorneys in the practice work closely with those from other disciplines to provide our clients with comprehensive representation in their business transactions.

Every attorney in our Corporate Practice is dedicated to making sure that each client receives a high degree of personal attention, and that the correct combination of legal talent is assigned to each matter. We believe that our clients’ business objectives should...

310-788-4690