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Patriot National Bankruptcy Objection Filed

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The Missouri Department of Revenue (MDOR) filed with the U.S. Bankruptcy Court an objection to Patriot National’s Third Amended Plan.

The objection asserts, “MDOR has filed Priority Tax Claims totaling $61,240.06. The Plan provides several options for payment of the Allowed Priority Tax Claims. One of those options is treatment in a manner consistent with 11 U.S.C. section 1129(a)(9)(C). This code section provides for regular installment payments in cash over a period ending not later than 5 years after the date of the order for relief under section 301, 302, or 303.”

In addition, “If this manner of payment is chosen by Debtors, there is no indication as to when payments would commence. The language of 11 U.S.C. section 1129(a)(9)(C) provides a deadline by which all payment must be made but does not provide any guidance as to when the payments should commence or how frequently they will be made. Since the Plan does not address the commencement or frequency of payments, it lacks specificity and, as such, would be extremely difficult to enforce in the event of a default in plan payments.”

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