There was a very interesting and informative blog post regarding the NRA’s bankruptcy filing on CreditSlips.org on Friday. The post was by Georgetown law professor Adam Levitin. Levitin is an expert on bankruptcy and business restructuring. His list of publications regarding bankruptcy includes both law books and multiple law review articles.
The post says there are many issues with the filing:
This is going to be one heck of an interesting case. There are already so many glaring issues (or should I say “targets”?): venue, good faith filing, disclosures, the automatic stay, the trustee question, fiduciary duties to pursue claims against insiders, executory employment contracts, the fate of Wayne LaPierre, and the generally overlooked governance provisions of the Bankruptcy Code.
Read the whole post. The gist of it is that by filing for bankruptcy, the NRA has opened a can of worms and there could be a lot of unintended consequences. For example, if as the NY Attorney General alleges, Wayne LaPierre has a contract that guarantees his salary for life even if removed, bankruptcy law limits that to one year’s salary.
I hope this is the last post I have to do on the NRA filing for bankruptcy for the time being. There are other important matters to write about such as the virtual Shot Show that starts today.