Replies to post #96018 on Tytan Holdings Inc (TYTN)

[Atlanta1]

ROFLMFAO

The purpose of filing the CH7 is: get rid of all the debts and liabilities while liquidating all the nonexempt assets in order to re-start the company from a fresh point!

TOTALLY FALSE


HERE IS THE TRUTH: Chapter 7 Liquidation Under the Bankruptcy Code

The chapter of the Bankruptcy Code providing for "liquidation," ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.)

Liquidation is NOT a "fresh start". It is the final stage of a company shutdown. It does NOT get rid of all debts and liabilities. It gets rid of all assets, and distributes the proceeds to creditors.

Good grief...

[CowsAndChickens]

I do have a fairly good understanding of Chapter 7. The purpose of a Ch 7 for a human being is a fresh start. The purpose of a Ch 7 for a corporation is liquidation. Tytan International no longer exists. The assets of Tytan International have been fully distributed. The major creditor is the FDIC. They are a secured entity. Any assets the Trustee locates will most likely go to them. If not them there is still the IRS, WA State, and most likely some future fines for criminal activity. Although the shell corporation Tytan Holdings Inc did not file bankruptcy it has no assets. If it did they are subject to seizure as Leonard was using both corporations as his private ATM. The corporate veil is easily peirced.

The only real remedy the share holders have is to sue Mark Leonard. He will not be protected by bankruptcy so he is a viable target. The shareholders however, will need to get into the back of the line as the creditors have first shot at him.

I am not sure why he has not done so already. My guess is that he will try to flee the country with whatever ill gotten gains he has. He should have never filed bankruptcy. He should have just taken what he could and gotten out of the country. Given the real estate to the FDIC. Bankruptcy made is possible for the FDIC and Mitch Bogden to pursue him with ease. The SEC may never have worried about him. Now he has committed bankruptcy fraud and is currently thumbing his nose at the IRS and Washington State Department of Revenue. In my opinion, it is not much longer before he is wearing some handcuffs.