In a twist of events, Rudy Giuliani’s bankruptcy case was dismissed by Michael E. Wiles, a Federal Bankruptcy Judge in New York, in a decision that reignited conversations about the legal problems that President Trump’s personal lawyer seems to face continuously. Speculations around Giuliani’s troubling financial status had been on the rise, only to hit a wall with Judge Wiles’ latest ruling.
Mr. Giuliani had put forward a bankruptcy filing for his security consultancy firm, Giuliani Security & Safety through a ‘Chapter 11’ bankrutpcy filing. To put it in simplistic terms, this filing is a attribute of bankruptcy proceedings in the United States that ensures businesses or companies can stay afloat while rehashing their debts. Essentially, it allows the debtor to propose a plan of reorganization to keep its business alive and pay creditors over time.
His firm was represented by Larry Krantz, a New York lawyer who in a written statement had explained, The company simply has no assets, other than potential claims against entities for breach of contract, unjust enrichment and other causes of action”. In simpler terms, Giuliani’s security company was virtually empty and the primary source of assets was expected to come from recovering damages from broken contracts and other related claims.
However, there loomed a twist in the tale. Lawyers for MG Security Services, a principal claimant in this case which is owed thousands of dollars, objected to the Chapter 11 filing. Citing the fact that Giuliani’s firm had no staff or operations, they hoped to push for the case to be converted to Chapter 7 liquidation.
Judge Wiles, in his ruling, determined that this bankruptcy filing did not suggest a genuine likelihood of a successful reorganization. He observed that no operations could be interrupted if the firm was liquidated. At the heart of this was the fact that the firm essentially had no business running, it appeared to only be a corporate shell. As such, Wiles stated, There is no chance that this debtor can rehabilitate itself,” to justify his ruling.
It was also revealed in court that the firm has a single creditor who is owed $257,000, which is more than the amount stated initially in the bankruptcy filing, confirming doubts around the firm’s ongoing viability.
While this decision has certainly thrown a spanner in the works, it seems that there are equally pressing matters for Giuliani to attend to. The former Mayor of New York City is also being sued by two voting machine companies, Dominon and Smartmatic, for billions of dollars over false statements he made about the 2020 presidential election. This legal quandary makes it clear that regardless of the outcome of his bankruptcy case, Mr. Giuliani seems drenched in a whirlpool of increasing troubles.
Not to mention, whether by coincidence or not, Giuliani’s security consultancy firm’s bankruptcy falls in the backdrop of his ongoing investigation by federal prosecutors in Manhattan over his work in Ukraine. This case has cast a long shadow over his legal and financial future, adding more turbulence to Giuliani’s already troubled legal waters.
In conclusion, the New York judge’s choice to throw out Giuliani’s bankruptcy case coupled with his other ongoing legal battles, highlights a tumultous turn of events for the former personal lawyer of President Donald Trump. These legal tussles not only impose a heavy strain on Giuliani but reflect an uncertain future that lies ahead.