Dispute Over Insider Loan Resolved By Confirmation Of Plan Of Reorganization - September 18, 2014

On September 18, 2014, the Honorable K. Rodney May of the United States Bankruptcy Court for the Middle District of Florida, Tampa Division, confirmed the plan of reorganization proposed by a Florida-based debt servicing company. Following the entry of a judgment declaring that certain contributions made by an insider were in fact loans, the insider took immediate actions to garnish the company’s bank accounts. The emergency filing was necessary in order to preserve the Debtor’s ongoing business. The plan provided for the orderly payment to all creditors over a five-year period and was confirmed in less than five months. Susan H. Sharp was the principal lawyer for the Debtor.