8th Circ. OKs Forced Ch. 7 For Filing-Happy Oil Co.

Law360, New York (October 5, 2011, 4:43 PM EDT) -- The Eighth Circuit on Wednesday affirmed the involuntary conversion of a New York gas station company's bankruptcy to Chapter 7, ruling that the company's four previous filings under a different name were an abuse of the system.

The appeals court said Yehud-Monosson USA Inc. was substantially the same entity as Midwest Oil of Minnesota LLC, which has filed for bankruptcy four times in Delaware and Minnesota since 2009 in an attempt to stall foreclosures and circumvent a one-year filing ban. The two companies own the same...
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