All right. I am a lawyer. I spent -- past tense -- about 25 years involved in many aspects of the bankruptcy process (which I can detail privately if you insist).
This post is not legal advice to anybody.
Here is my take.
Totally unsurprising: Kolstein (the shop) files for bankruptcy.
You inadvertently left out an important word: "Protection." Kolstein Shop filed for bankruptcy
protection.
Anyone who thinks that they have any claim of any type against the Kostein Shop is required to pursue that claim exclusively in the bankruptcy.
Do not call. Do not write. Do not threaten. Do not sue. Do not plead ignorance. Do not make excuses. Do not get cagey.
The bankruptcy process is the sole and exclusive mechanism for any action to collect any claim against Kolstein Shop until that particular US Bankruptcy Court says otherwise.
Though it is Ch 11 and not 7....
It is a Chapter 11 reorganization case. The debtor, Kolstein Shop, has a modest amount of time to develop a detailed written plan to reorganize its business affairs and submit that plan to the court for approval.
One essential standard by which that plan will be evaluated is whether it treats unsecured creditors better than they would be treated if the Kolstein Shop were liquidated. Please note the substantial distinction between "better than liquidation" and "made whole."
The US Bankruptcy Code does not treat all creditors equally. One priority group is the professionals who drive the bankruptcy train, because if the train is going to get to the station professionals need to drive it. Another priority cover many types of tax debt. Those are just examples; there are a bunch.
Does Kolsteins have any chance of survival restructured with Manny at the helm?, can it regain customer confidence if Barrie gets full control and looks to sell it to a legit buyer?
I often quote the 20th-century philosopher Edward Van Halen: "Only time will tell if we stand the test of time."
I don’t think so. This seems bound for criminal court in a matter of time.
I have to imagine the FBI has his number at this point. Whatever happens from here, it will surely be dramatic and this will not end well.
Roger, I am nobody around here and you are a big cheese.
Even so, please cut that poopie out.
Using TalkBass to call someone a criminal, or to cutely insinuate that they might be a criminal, exposes TalkBass and Paul to potential trouble.
And it's needless. Wow, great, check mark for you, bravo.
+ + +
The thing which drew me to bankruptcy law decades ago is that the fundamental facts are that a) there is a problem; b) there are not enough assets to completely solve the problem; and c) the law ensures that all cases are treated the same way, even if the precise outcomes may not appear to provide justice for all involved.
I could live with that, and I did live with that for a long time.