Opinion ID: 2780845
Heading Depth: 2
Heading Rank: 1

Heading: Involuntary Petitions

Text: On March 17, 2011, a group of six individuals and entities— Solby+Westbrae Partners; 19 SHC, Corp.; Ajna Brands, Inc.; 601/1700 NBC, LLC; Axafina, Inc.; and Oxana Adler (collectively, the “Petitioning Creditors”)— filed three separate involuntary Chapter 11 bankruptcy petitions in the U.S. Bankruptcy Court for the Southern District of Florida against Fisher Island, Little Rest, and Mutual Benefits. The involuntary petitions were filed as the parties anticipated key rulings on the ownership issue in the New York and Florida litigations. The involuntary petitions asserted claims against the Alleged Debtors for approximately $32.4 million, $28.5 million of which was based on a promissory note (the “Note”) purportedly executed by the Alleged Debtors and assigned to three of the Petitioning Creditors by a non-party, Areal Plus Group. The Petitioning Creditors, asserting that the Alleged Debtors were “affiliates,” moved 9 Case: 12-15595 Date Filed: 02/20/2015 Page: 10 of 57 the bankruptcy court to jointly administer the three cases and to appoint a trustee to take control and possession of the Alleged Debtors’ assets.