Money Centers Ch. 11 Court Says Tribes Out Of Jurisdiction

By Rick Archer (March 1, 2017, 3:39 PM EST) -- A Delaware bankruptcy court found Tuesday it lacks jurisdiction over several Native American casinos that were targeted for avoidance actions in cash access provider Money Centers of America Inc.'s Chapter 11 proceeding.

While U.S. Bankruptcy Judge Christopher S. Sontchi found one of the tribes involved may have waived its sovereign immunity for one of the claims brought by the defunct casino check-casher, the wording of the U.S. Bankruptcy Code does not support the general abrogation of immunity MCA had asked for.

MCA had filed for Chapter 11 protection in March 2014, listing between $10 million and $50 million in debt, shortly...

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