SIST bankruptcy cases dismissed: Ruling will move Shawano County civil actions forward

Shawano Leader/August 17, 2011

The R.C. Samanta Roy Institute of Science and Technology Inc. (SIST) and two of its subsidiaries Tuesday agreed to a dismissal of their bankruptcy cases in federal court.

Under a court order agreed to by SIST and the U.S. Trustee’s Office, the Chapter 11 bankruptcy cases of SIST, Midwest Properties of Shawano LLC, and U.S. Acquisitions and Oil Inc. were dismissed with prejudice for one year.

The ruling means none of the three entities can file new Chapter 11 bankruptcy petitions in any bankruptcy court in the U.S. for one year, prohibits them from filing under a new corporate name and prevents a new filing by any corporate entity that might purchase their assets or liabilities.

The ruling also opens the way for a number of stalled civil actions in Shawano County Circuit Court to go forward.

SIST and six subsidiaries originally filed for Chapter 11 bankruptcy protection in Delaware in March 2009.

Tuesday’s action ended the last of the federal bankruptcy petitions pending for any of those seven entities.

A hearing had been scheduled for Tuesday morning on a U.S. Trustee motion calling for either a dismissal of the last three bankruptcy filings or the appointment of a Chapter 11 trustee or examiner.

Instead, the consensual motion to dismiss was presented to the court. No explanation was offered in the ruling for why the parties agreed to dismiss.

The ruling came three weeks after SIST retained a new law firm, Hantam and Associates, as a special counsel in the bankruptcy case.

According to court records, the law firm received a $15,000 retainer from Dagul Kishron Corp. of USA, described as a non-debtor entity in which SIST has a controlling interest.

SIST and its subsidiaries own a number of Shawano area properties and businesses, including three gas station/convenience stores. Several of those properties have been the subject of foreclosure action in Shawano County Circuit Court that has been delayed due to the various bankruptcy filings.

The original seven bankruptcy petitions were dismissed in September 2009 and were subsequently appealed to the U.S. Third Circuit Court of Appeals.

However, SIST and three of the subsidiaries withdrew from the appeal, only to re-file new bankruptcy petitions.

Midwest Properties and Midwest Oil of Minnesota LLC withdrew in August of last year. U.S. Acquisitions and Oil Inc. withdrew in January and SIST withdrew in March.

The subsidiaries remaining from the original March 2009 petition were Midwest Oil of Wisconsin LLC, Midwest Oil of Shawano LLC, and Midwest Hotels and Motels of Shawano LLC.

In June, a federal appeals court upheld the dismissal of their original Chapter 11 bankruptcy petitions.

One other subsidiary that had been part of the original filing, Midwest Oil of Minnesota, was merged into a new entity, Yehud-Monosson USA Inc., which filed for Chapter 11 bankruptcy in the state of New York in March.

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