On July 29, 2016, SLJ Trucking Inc. ("Debtor" or "SLJ") filed a voluntary bankruptcy petition under Chapter 7 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware. The Debtor is a licensed and bonded freight shipping and trucking company running freight hauling business from Newark, Delaware.
According to the Petition, the Debtor has less than $50,000 in estimate assets, and between $100,000 and $500,000 in estimated liabilities. The Section 341 meeting of creditors is scheduled for September 1st at 11:00 a.m. at the J. Caleb Boggs Federal Building, 844 King St., Room 2112, Wilmington, DE.
One way in which creditors can assert their interests is to attend the Section 341 Meeting of Creditors, in order to depose the debtor's representative regarding the assets and liabilities of the bankruptcy estate. Creditors may retain counsel to conduct such an examination of the debtor's representative. The Section 341 meeting of creditors is an integral component of a bankruptcy proceeding. Creditors often want to know what information is made available, and what procedures are followed, during a typical meeting of creditors.
General topics that are discussed during a Section 341 meeting can include the following issues:
- The nature of scope of a debtor's assets and liabilities;
- The amount of accounts receivable and accounts payable;
- To what extent the debtor is able to repay its creditors;
- Whether insurance remains active;
- The condition and location of goods received in the 20 days before bankruptcy;
- The condition and location of goods received in the 45 days before bankruptcy;
- The debtor's or trustee's plan to reorganize its debt or liquidate its assets;
- The debtor's plan after it emerges from bankruptcy (not applicable to a Chapter 7 debtor);
- Whether the debtor experienced any changes in revenue since filing for bankruptcy; and
- Potential avoidance actions to be commenced by the debtor or trustee.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.