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A U.S. Bankruptcy Court is treading carefully on a Chapter 7 bankruptcy liquidation that will leave behind a large cache of weapons.
Seattle-based company Advanced Interactive Systems recently sought bankruptcy law protection under Chapter 7 of the Bankruptcy Code. The company owns a number of shooting ranges and also trains security professionals, and as a result of their liquidation, a weapons arsenal of Glock and Beretta handguns, as well as AR-15 rifles, are still in the business’s inventory, according to Reuters.
However, the recent climate and controversy surrounding gun control has made it difficult for court officials to determine how to proceed.
In a Chapter 7 bankruptcy such as this one, bankruptcy trustees are directed to be appointed by the bankruptcy court to manage the liquidation. However, the weapons left in the company’s inventory make this bankruptcy more complicated. The article notes that the trustee could potentially be liable if buyers purchased the weapons at auction and then used them illegally or harmed individuals. Some professionals estimate that the trustee may choose to sell the business as an ongoing operation to help avoid liability, Reuters reports.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
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