Law360: Bad Faith Dismissal Shows Perils Of Involuntary Filing
March 20, 2025
On March 14, US Bankruptcy Judge Thomas M. Horan dismissed PTGi International Carrier Services’ involuntary Chapter 7 case. Judge Horan’s opinion cited that one of the petitioning creditors was attempting to collect on a claim. “The bankruptcy court did not want to be used as the second bite of the apple,” said Ana Alfonso, a restructuring partner at O’Melveny & Myers LLP. “That is a teaching moment for anyone counseling clients on the commencement of an involuntary bankruptcy.”
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