Does a subsidary company get included in bankrutpcy?

[csgkelly]

I have been employed with a company for 13 years. For the past 2 months I had been working on an asset purchase from our owner to buy the company. We are a subsidary of a parent company. The parent company had recently been shut down for fraudulent activities and therefore are no longer doing business as of Friday. We are still an operating entity that is separate from them. The owner states that he cannot continue the purchase with me, but is very vague as to why. If the parent company files bankruptcy, what happens to us as an operating company that is a subsidary? Is there someone I can contact besides the owner to try and still pursue purchasing the assets?

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by csgkelly:
I have been employed with a company for 13 years. For the past 2 months I had been working on an asset purchase from our owner to buy the company. We are a subsidary of a parent company. The parent company had recently been shut down for fraudulent activities and therefore are no longer doing business as of Friday. We are still an operating entity that is separate from them. The owner states that he cannot continue the purchase with me, but is very vague as to why. If the parent company files bankruptcy, what happens to us as an operating company that is a subsidary? Is there someone I can contact besides the owner to try and still pursue purchasing the assets? <HR></BLOCKQUOTE>

This subsidiary company would be included in the bankruptcy as long as this same owner has an sole or partial interest. Since this owner has controlling interest in the company, you would need to contact this person or his respresentative which may be his/her attorney to discuss your offer to purchase.

 

[Tracey]

The parent company's interest in the subsidiary is an asset of the BK estate. It belongs to the BK trustee & the trustee has to approve any sale of assets. You may need to file a claim against the subsidiary for a refund of money paid, or for breach of contract. If you do, you must do so soon, before the trustee decides to liquidate the BK's interest in the subsidiary. You probably need to consult a BK creditor-lawyer. You may need to file claims or take other steps.

------------------
This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.