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TransLand petitioning creditors ask court to dismiss case in light of liquidation settlement
By Caroline Salls
Pittsburgh, Nov. 27 - Two of the three TransLand Financial Services, Inc. creditors that filed an involuntary Chapter 11 case against the company have asked the U.S. Bankruptcy Court for the Middle District of Florida to dismiss the case in connection with a liquidation and dissolution settlement, according to a Tuesday court filing.
The motion to dismiss was filed by petitioning creditors TierOne Bank and MidCountry Bank. According to the filing, petitioning creditor Federal Trust Bank did not join in or consent to the motion, but it also does not oppose the case dismissal motion.
The petitioning creditors said they have reached an agreement with TransLand and its shareholders that will result in the liquidation of mortgage loans upon which the shareholders have a first-priority security interest and the liquidation of other TransLand assets.
The liquidation is expected to result in a distribution to TierOne, MidCountry, the shareholders and TransLand's creditors.
Following the liquidation, TransLand will be dissolved.
As a condition of the settlement, any attorneys' fees and damages claims the company may have against the shareholders, TierOne and MidCountry must be preserved.
In addition, in consideration for the shareholders' guarantee of TransLand's attorneys' fees, their substantial work in connection with the settlement and their agreement to share their secured collateral with other creditors, TransLand has assigned its claims against TierOne and Federal Trust Bank to the shareholders.
TierOne Bank, Federal Trust Bank and MidCountry Bank filed an involuntary Chapter 11 bankruptcy case against TransLand on Aug. 23.
The company is a Maitland, Fla.-based mortgage brokerage firm. Its Chapter 11 case number is 07-03834.
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