Escape New York: Court Dismisses NRA’s Chapter 11 As Improper Tactic to Avoid New York’s Non-Profit Regulatory Scheme
August 3, 2021 – Law Journal NewslettersHerrick Restructuring & Finance Litigation partner Steven Smith and associate Silvia Stockman authored an article for "The Bankruptcy Strategist" segment in Law Journal Newsletters. The paper analyzed the May 2021 dismissal of the Chapter 11 case of the National Rifle Association ("NRA") and certain of its affiliates.
They wrote, "The high-profile New York-based non-profit sought bankruptcy protection in Texas on Jan. 15, 2021 and immediately faced a bevy of motions seeking dismissal of its Chapter 11 case pursuant to Section 1112(b) of the Bankruptcy Code filed by: 1) a former vendor-turned-litigation adversary, Ackerman McQueen, Inc.; 2) the New York Attorney General (NYAG); and 3) the District of Columbia Attorney General. A separate motion seeking the appointment of an examiner pursuant to section 1104(c) of the Bankruptcy Code was also filed."
The article further explored "the competing factors the Bankruptcy Court considered and the rationale underlying its decision to grant the drastic relief of dismissing the NRA’s bankruptcy case."
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