Stonepath requests dismissal of involuntary Chapter 7 case; petitioners not Stonepath creditors

By Caroline Salls

Pittsburgh, May 29 - Stonepath Group, Inc. asked the U.S. Bankruptcy Court for the District of Delaware to dismiss the involuntary Chapter 7 bankruptcy case filed against it because none of the petitioners is actually a Stonepath creditor, according to a Tuesday court filing.

As previously reported, petitioners Spherion Corp., Custom Transfer Inc. and Overbye Transport Inc. made the involuntary Chapter 7 filing on May 8 and asked the court to appoint an interim trustee because management had allegedly abandoned the company.

In its response filed Tuesday, Stonepath said the petitioners are actually creditors of Stonepath Logistics Domestic Services, Inc. subsidiary MGR, Inc.

Stonepath Group is the parent of Stonepath Logistics.

"The petitioning creditors knew, or should have known, that they were not creditors of Stonepath, and consequently the petition was filed in bad faith," Stonepath said in the response.

In a related filing, Stonepath Group director of accounting Peter Farsje said he has "seen no records or evidence of any kind that indicate that Stonepath Group, Inc. has ever had any direct dealings with the petitioning creditors."

In addition to its request for case dismissal, Stonepath said it is entitled to attorney's fees and damages stemming from the bankruptcy filing, the amount of which will be determined at the trial on the case dismissal.

Stonepath is a Seattle-based logistics company. Its Chapter 7 case number is 07-10643.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.