Robert Nix Federal Building, 33 S 9th St., Philadelphia. (Photo: Wikipedia.com). Under Pressure From Lit Funding Creditor, Sacks Weston Agrees to Drop Chapter 11 Bid
The firm acknowledged expected difficulties in convincing creditors to confirm its bankruptcy plan.
April 24, 2024 at 06:48 PM
3 minute read
What You Need to Know
- Sacks Weston withdrew its objection to having its bankruptcy case dismissed, heading off judgment by U.S. Bankruptcy Judge Patricia Mayer, who was expected to offer a ruling on a dismissal before the end of the month.
- The filing marks a sudden end to the firm's bankruptcy, with Sacks Weston's counsel David Smith acknowledging that the firm was unlikely to have its bankruptcy confirmed by creditors.
- Following the bankruptcy's dismissal, Virage's ongoing loan dispute with the firm filed in Texas will be allowed to proceed after a nearly year-long stay.
Embattled Philadelphia firm Sacks Weston agreed to put an end to its Chapter 11 proceedings on Wednesday, a month after creditor Virage Capital sought a dismissal on the grounds that the petition was filed in bad faith as a means to delay trial and forum shop in an ongoing dispute between the two parties.
David Smith, the firm's bankruptcy counsel, submitted a filing consenting to a dismissal of the firm's Chapter 11 case, acknowledging expected difficulties in convincing creditors to confirm a bankruptcy plan.
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