June 14, 2018 / 7:41 PM / in 9 months

Appeals court upholds creditor-shareholders’ right to bar Ch. 11 filings

An unsecured creditor is not barred by federal or state law from using its rights as a shareholder to prevent a company from filing a bankruptcy petition, the U.S. Court of Appeals for the Fifth Circuit ruled on Thursday.

The court affirmed a decision by the U.S. Bankruptcy Court for the Southern District of Mississippi which dismissed a Chapter 11 petition by Franchise Services of North America (FSNA) after a shareholder objected to the bankruptcy filing.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2lbBME8

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