The Wardman Wire

You can read the background to this story here.

I hear from Phil Groom that the application to make the UK charity Society of Saint Stephen the Great bankrupt at the United States Bankruptcy Court Southern District of Texas in Houston has been Dismissed with Prejudice:

Thanks to Rigorist for this update, posted August 29, 2008 at 12:11 am:

I just checked the US court system’s PACER service this afternoon (it is still afternoon on this side of the Atlantic). The bankrupcty case was dismissed at today’s hearing on the trustee’s motion.

The actual docket entry is as follows:

“Courtroom Minutes. Time Hearing Held: 11:00 am. Appearances: Mark Brewer for debtor; Randy Williams for Trustee. (Related document(s): 24 Chapter 7 Trustee’s Motion to Dismiss Case). Ellen Hickman present. Mr. Williams addressed the Court regarding the motion to dismiss. Arguments were heard by opposing parties. The Court announced its findings and dismissed the case with prejudice. (rsmi) (Entered: 08/28/2008)”

A written order with more explanation may follow, but as of right now, the bankruptcy case is dismissed.

This means that the Society of Saint Stephen the Great, a UK Charity, has been recognised (at this stage, by this Court) as not being able to be liquidated under US Bankruptcy Laws.

The “With Prejudice” dismissal means that the case is dismissed for good reason and the plaintiff is barred from bringing an action on the same claim. I can’t comment on what is possible in other courts, however.

For anyone who hasn’t been following this story, it means (among other things) that:

• The more than 20 Industrial Tribunals against SSG do not now face working against an organisation declared insolvent 3000 miles away.
• The many organisations who are creditors of SSG have more of a hope of being paid.
• It is one step to making the whole SPCK/SSG situation that one bit less complicated.

The whole attempt to put a UK organisation into US bankruptcy has looked perverse from the start, so I’d summarise this story thus: Shoal of Red Herrings reduced by one.

Score one for Randy Williams, the Trustee for Bankruptcy, and Due Process.

Further coverage: SSSG/SPCK News, The Bookseller.