Any Tennessee business owner who is worried about legal issues with creditors may want to follow a case that recently made news headlines. While the situation has not yet been completely resolved, various parties have stated that a solution is in the works. The case involves a company in another state that sells sports nutrition products and several creditors who filed an involuntary Chapter 7 bankruptcy claim against it.
The owner of the company has encountered numerous legal problems in recent months, including facing arrests for allegedly boating under influence of drugs or alcohol, as well as operating a motor vehicle that was involved in a collision while allegedly impaired by a pharmaceutical drug used to treat insomnia. The man stated that his company is financially sound and that the entire situation was spurred by a misunderstanding about a payment plan with his creditors. He also said that discussions are underway to settle the case out of court.
A hearing is scheduled to dismiss the bankruptcy claim
An upcoming hearing will determine whether the Chapter 7 claim filed against the sports nutrition company should be dismissed. The claim was filed by three creditors, one of whom has manufactured products for the company since its first days in business. The company owner cited the fact that it has plans laid out to launch a new line of sports drinks as evidence that the business is financially viable and is able to keep making payments for the accumulated debt to the three creditors, which totals more than $6 million.
Involuntary bankruptcy petitions are often filed when creditors believe there has been a misappropriation of funds on the part of a business owner. It is typically a case where creditors believe that the allaged misappropriation will cause or had caused a business to become insolvent. Tennessee business owners facing similar bankruptcy issues may wish to seek legal guidance if attempts to resolve an issue with creditors have not been successful.