A subsidiary of the Samanta Roy Institute of Science and Technology is seeking to consolidate its latest bankruptcy case with the new bankruptcy petition filed by its parent company.
Midwest Properties of Shawano, LLC, was originally part of a bankruptcy petition filed by SIST and six of its subsidiaries in Delaware in March 2009. That case was ultimately dismissed, but SIST and its subsidiaries appealed. The case is pending in the federal Third Circuit Court of Appeals.
However, Midwest Properties later withdrew from the appeal and filed independently in U.S. Bankruptcy Court in Milwaukee, but the case was subsequently sent back to the Delaware court, where, it too, was dismissed.
Midwest filed another Chapter 11 bankruptcy petition in Delaware in February.
SIST subsequently also withdrew from the Third Circuit appeal and filed another new bankruptcy petition in Delaware - which is the one Midwest is now seeking to consolidate with, according to court documents.
In the motion filed Monday, Midwest argues that the consolidation makes sense given that the two entities share a tax ID number, assets and members of their boards of directors.
"Maintaining these cases as two independent cases serves no practical purpose, and creditors have far better chance of recovery with the entities merged into one consolidated case," the motion states.
The bankruptcy filings by SIST and its subsidiaries have managed to stave off a number of civil actions filed in Shawano County Circuit Court, including the foreclosure of properties in the Shawano area owned by SIST or its subsidiaries.
