Diamondhead Casino

Diamondhead Casino Bankruptcy – Motion to Dismiss Involuntary Petition – Granted

06/13/16

On June 7, 2016, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on a motion to dismiss Diamondhead’s involuntary bankruptcy petition.  The Creditors who filed the bankruptcy admitted to the Court that their intent in filing for bankruptcy was to remove management and to obtain a recovery for their equity investments.  The “Opinion” is available here.  This is the second recent opinion issued in this case.  The prior opinion wa

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Diamondhead Casino Bankruptcy – and the Challenge to Trustee Appointments

11/15/15

On November 13, 2015, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on an emergency motion to appoint a trustee.  Unfortunately for the movants, it is hard to argue it is an emergency when the debtor is almost out of cash, but has been running on fumes for the last several years with a massive equity cushion.  The “Opinion” is available here.

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