Creditors' Standing To File Involuntary Petitions

Law360, New York (June 29, 2009, 12:00 AM EDT) -- During the past year, there has been anecdotal evidence of a marked increase in the filing of involuntary bankruptcy petitions, such as those brought against Ponzi-schemer Bernie Madoff and lawyer Marc Drier.

The question that is raised is whether an unstayed final judgment that is subject to a pending appeal constitutes a claim that is subject to a bona fide dispute for the purpose of filing an involuntary petition. A recent decision by the U.S. Bankruptcy Court for the District of Delaware highlights the significance of...
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