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Volume 26 No. 59
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Bankruptcy Trustee Wants Hearing Amid No Payments From AAF

The U.S. bankruptcy trustee overseeing the Chapter 7 case of the AAF yesterday asked for an emergency court hearing for today because the league’s bank has been unresponsive in turning over $1.9M of deposits. The trustee, Randolph Osherow, wrote in the motion he has no funds to oversee the case, and despite repeated efforts, Silicon Valley Bank has been unresponsive. “The Trustee needs to file several motions, including a motion to consolidate, hire and pay professionals, and motion to sell equipment,” Osherow wrote. “The trustee may need to transport equipment back from Atlanta, Ga to be stored and sold here in San Antonio, Texas. There are no funds as of today."

He continued, “The trustee would ask the court to ... cause Silicon Valley Bank to appear before the court to explain why they have refused to turn over the accounts the debtor claims are on deposit." The AAF filed for Chapter 7 on April 17. There are over 7,000 creditors, according to the Osherow motion.