Trustee Seeks Dismissal of Global Bankruptcy Case

The government trustee overseeing the Chapter 11 bankruptcy petition of Global Authentication has filed a motion asking the U.S. Bankruptcy Court to dismiss the petition, saying the parent company of the sports card and autograph authentication firm has failed to meet some of the obligations required of a debtor during a bankruptcy proceeding.

Nancy Goldenberg, the attorney representing the U.S. Trustee, says Global has failed to file certain schedules and a statement of its financial affairs, failed to notify creditors of a Meeting of Creditors hearing that was rescheduled at Global’s request, failed to satisfy U.S. Trustee compliance requirements and failed to appear at an Initial Debtor Interview hearing scheduled by the trustee.
A dismissal of the bankruptcy petition means creditors would be allowed to pursue claims against Global that can not be pursued while the company is operating under Chapter 11 protection.

Global attorney Mark Galyean told the court some of the paperwork delays were the result of the resignation of Global’s chief financial officer and an illness that forced Galyean to miss several days of work just after Global’s original bankruptcy filing on Dec. 16.

A judge will rule on the dismissal motion on March 25.