AGG Bankruptcy partner Darryl Laddin was quoted in an October 19, 2022, Natural Products Insider article titled, “Redcon1 Dodges Chapter 7 Bankruptcy Fight.” The article discusses a matter in which three creditors led by Hi-Tech Pharmaceuticals Inc. filed an involuntary Chapter 7 bankruptcy petition against Redcon1, raising questions about its financial health.
In the article, Darryl elaborates on the details of involuntary Chapter 7 bankruptcy cases.
“In a voluntary [bankruptcy] case, the order for relief is automatic; basically, they’re in bankruptcy,” said Darryl. “In an involuntary case, the debtor has the right to file an answer and controvert the petition and may do so on multiple grounds.”
“The key is that those creditor claims have to be non-contingent and not subject to a bona fide dispute as to liability or amount,” Laddin said.
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