Posted on Thursday, December 24th, 2009.
Bankruptcies By White House Party Crashers' Arouse Scrutiny
A post from the blog Credit Slips by Adam Levitin investigates the how salacious (or not) the news about the White House party crashers’ bankruptcies truly is:
“…the White House dinner crashers (Tariq and Michaela Salahi) have noted that they own a winery that filed for Chapter 11 (reorganization) bankruptcy and then converted to Chapter 7 (liquidation) bankruptcy. My prurient interest was engaged, so I tracked down the petitions and relevant filings (linked below). What follows is my attempt to sort out the Salahi family’s business doings, as well as some musings about where we should really look for bankruptcy abuse–small business filings where the business is the alter ego of the owner, but where corporate law might not allow veil piercing. In these cases the sophisticated creditors get personal guarantees, but the tax authorities, tort creditors, and unsophisticated creditors get screwed by the corporate form.”
Read the entire post on the White House crashers’ bankruptcies.





