Judge Denies Montana Involuntary Bankruptcy Claim Against Blixseth | Crime and courts
In 2011, Montana joined the Idaho State Tax Commission and the California Franchise Tax Board against Blixseth, however, those two states had made deals and withdrew from the petition, according to documents. judicial.
Nakagawa noted that as of the date of the hearing, nearly a decade had passed since the involuntary petition was filed. He said that since April 20, 2011, only Montana has consistently pursued this issue against Blixseth.
He said the Yellowstone club’s liquidation trustee was apparently interested in continuing the involuntary proceedings against Blixseth, but gave up nearly two years before the 9th Circuit mandate was received by that bankruptcy court.
“Montana maintains that it has ‘vigorously pursued’ this unintentional proceeding,” Nakagawa wrote. “There’s no question Montana has been more defensive than offensive throughout this process. There is no doubt that the prospect of defending the alleged debtor’s probable claim under Section 303 (i) adds to Montana’s force.
He said Montana had provided no evidence that any unsecured creditors eligible for the action “were banned from doing so or even expressed an interest in doing so.”
“Under these circumstances, the dismissal of this nearly decade-long case serves the public interest in the speedy resolution of bankruptcy proceedings,” Nakagawa wrote.