ABC ASSIGNEE BANNED
to initiate bankruptcy proceedings.
Bankruptcy is never mentioned in the
ABC agreement or in the form language
from the Florida statute. Instead, as
one would expect, the procedures,
rights, and duties associated with
an ABC proceeding are thoroughly
delineated, with repeated references to
Florida’s ABC statute and none to the
U.S. Bankruptcy Code.”3 From such
ruling, the bankruptcy orders tumbled.
The settlements became nullities.
The bankruptcy stay would no longer
interfere with the unsuccessful bidders’
litigation against the assignee. The
assignee’s law firm could possibly still
be sued by the assignee.4
Conclusion
The effect of this particular
ruling will give some repose to those
who deliver a corporation to an ABC.
It is now assured that the delivery of a
corporation to an ABC shall not evolve
into a voluntary bankruptcy filed by
the assignee of an ABC.5 As stated
by the Eleventh Circuit, an ABC is an
alternative to a bankruptcy; and, it
shall remain as such.
(Endnotes)
1. Ullrich v. Welt (In re Nica Holdings,
Inc.), 2015 U.S. App. LEXIS 21991
(11th Cir. Fla. Dec. 17, 2015)
2. 11 U.S.C. § 109(e).
3. 11 U.S.C. § 109(e).
4. 11 U.S.C. § 109(d).
5.
Those limitations are primarily
railroads, banking institutions and
foreign insurance companies. In short,
the vast majority of corporate entities
16
CONSUMER BANKRUPTCY JOURNAL
may seek refuge under chapters 7 or
11 of the Bankruptcy Code.
6. 11 U.S.C. § 109(b).
7. Bankruptcy Abuse and Consumer
Protection Act
8. In the case of Piazza v. Nueterra
Healthcare Physical Therapy, LLC,
469 B.R. 388, 390-391 (S.D. Fla.
2012), District Judge Moore noted the
following cases stating this proposition
to be true:
In re Owens, No. 04-17420—
WHD, 2006 Bankr. LEXIS 2513,
2006 WL 6589877 (Bankr. N.D.
Ga. Aug. 18, 2006) (Drake, J.);
In re Isham, No. 05-31856-BKCSHF, 2006 WL 1431401 (Bankr.
S.D. Fla. Mar. 9, 2006) (Friedman
Click for Enhanced Coverage
Linking Searches, J.); In re
Bilzerian, 264 B.R. 726 (Bankr.
M.D. Fla. 2001) (Williamson, J.).
9. In the case of Piazza v. Nueterra
Healthcare Physical Therapy, LLC,
469 B.R. 388, 390-391 (S.D. Fla.
2012), District Judge Moore noted the
following cases stating this proposition
to be true:
Kane & Kane, 406 B.R. 163, 167
(Bankr. S.D. Fla. 2009) (citing In
re Tallman, 397 B.R. 451, 454
(Bankr. N.D. Ind. 2008)). In re
Baird, 456 B.R. 112 (Bankr. M.D.
Fla. 2010) [*391] (Briskman,