Tuesday, May 21, 2019

YOU SAY YOU WANT A DISSOLUTION: Winding Down, Or Winding Up? Mark Noss Scheduled For 2004 Examination This Morning In Federal Bankruptcy Court

According to federal bankruptcy court records, and pending any last-minute delay, Mark Noss is scheduled for an appearance this morning for a 2004 Examination hearing.

On May 7, Noss was ordered to provide Independent Bank with a dirty laundry list of documents related to his 2014 assumption of nearly $1.0 million owed by convicted felon Steven Ingersoll to Traverse City State Bank.

Michigan Department of State Uniform Commercial Code (UCC) records reveal Full Spectrum Management's Initial Financing Statement for the obligation was filed on March 21, 2014—less than 48 hours after Noss filed the incorporation paperwork with the Michigan Department of Labor & Economic Growth.

A record check for Full Spectrum Management, LLC reveals required annual filings abruptly stopped in 2017.

So why didn't Noss just dissolve the entity after he was canned by the Grand Traverse Academy?

Corporations typically choose to do a corporate dissolution when they don’t need bankruptcy protection (and prefer to avoid filing bankruptcy) but want to have the corporation formally wound down. 

The dissolution process can be less expensive than other alternatives, particularly when litigation or disputes over claims is unlikely. 

Corporations often elect to dissolve at a point when they anticipate being able to pay creditors in full and return some funds to shareholders or, if they are insolvent, find their creditors generally to be cooperative. 

If the corporation has a bank or other secured creditor, it helps if they are willing to work with the corporation to liquidate the assets without a foreclosure. 

Clearly not the case with Full Spectrum Management, eh?

More on this story as it develops.