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Creditors committee not opposed to dismissal of Chapter 11 petition
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Posted on May 24 2012
The Official Committee of Unsecured Creditors of the NMI Retirement Fund does not oppose the dismissal of the Fund’s Chapter 11 bankruptcy petition.
The committee, through counsel Don Jeffrey Gelber, said its decision not to oppose the dismissal was made before the committee selected and conferred with counsel.
Gelber filed yesterday in district court the committee’s statement of position on the motions to dismiss the Fund’s Chapter 11 case.
In the event the U.S. District Court for the NMI Bankruptcy Division decides that dismissal is appropriate, the court should retain jurisdiction to hear and determine matters related to the approval and compensation of professionals retained in the case, Gelber said.
Unnamed clients of attorney Bruce Jorgensen first brought up the motion to dismiss the case on the ground that the Fund’s structure and statutory existence makes it a “governmental unit” of the CNMI and therefore not eligible to file for Chapter 11 bankruptcy.
The motion to dismiss, based on the same grounds, was followed by similar motions filed by the U.S. Trustee, three retirees, the CNMI government itself, and the Commonwealth Ports Authority.
Fund counsel Braddock J. Huesman insists that the Fund is not a governmental unit and therefore the federal court should deny the motions to dismiss the bankruptcy petition.
