New Mexico, Mississippi Move to Dismiss LTL Management’s Second Bankruptcy Petition
May 16, 2023
TRENTON, N.J. –– The States of New Mexico and Mississippi have moved to dismiss the second bankruptcy Chapter 11 petition of LTL Management LLC, arguing that the filing is a “blatant violation of the 3rd Circuit’s” opinion dismissing LTL I.
In the May 10 motion field in the U.S. Bankruptcy Court for the District of New Jersey, the states argued that the 3rd Circuit U.S. Court of Appeals warned LTL against “attempting to manufacture financial distress by terminating the 2021 Funding Agreement, opining that such a transparent maneuver would be vulnerable to avoidance as a fraudulent transfer.”
“LTL’s transparent maneuvering …