by Just a few minutes ago, Judge Harlin Hale issued his decision in the NRA bankruptcy case. In what can only be considered a blow for the NRA, he dismissed the case.
The question the Court is faced with is whether the existential threat facing the NRA is the
type of threat that the Bankruptcy Code is meant to protect against. The Court believes it is not.
For the reasons stated herein, the Court finds there is cause to dismiss this bankruptcy case as not
having been filed in good faith both because it was filed to gain an unfair litigation advantage and
because it was filed to avoid a state regulatory scheme. The Court further finds the appointment
of a trustee or examiner would, at this time, not be in the best interests of creditors and the estate.
I will say I expected him to take the middle ground of either an examiner with enhanced powers or a trustee.
More later after I have had time to read the full decision.
Unless the board brings suit against the EVP on behalf of the organization and its membership, and goes on record stating the organization is a victim of fraud perpetrated by the EVP, et al, against the corporation and the membership, the organization cannot be treated separately from the hell that’s about to descend from NY (which means NY crushes the org, not just the bad actors).
Seen this happen before (other organizations), and it’s imperative that in times like this, the board get real outside counsel, reporting directly to them, and distance themselves and the corporation as far from the bad actors and drama as possible. I’m afraid this organization is so f’d structurally, though, that the board is incapable of acting independently. Even if they did have the leadership competence to find the way forward, which I doubt. Few on the board have actual corporate leadership experience (as noted in the NRAinDanger site today), and most of them are celebrity know-nothings – vacuous talking heads sitting at a table because it looks good, knowing full well a board that size can do nothing productive. Perhaps some whale members can organize themselves as representatives of the membership and get a seat at the table and at least save the core corporation and rebuild it with proper governance.
I have heard rumors today of an effort to reinvigorate the efforts of atty George Douglas for the members to be represented in the NYAG lawsuit or to intervene.
That’s really encouraging to hear. Tell me where to send my five dollars to that effort, John, or how I can help. I figure there will be all sorts of money-grubbing fronts out to get some of that NRA member money, some even claiming to help save the NRA, so we need to be wary of the insects, but damned if I don’t want to fight to hold onto our founding date and keep the institution alive.
So essentially the court told WLP, “You made this bed; now sleep in it.”
I suspect the NRA as it exists is done. Hopefully once the dust settles a new org can take up the name… Just not the baggage.