Three major creditors of collapsed local lender Live Well Financial are attempting to force the Chesterfield-based firm into bankruptcy liquidation as they seek to recoup more than $130 million.
Flagstar Bank, Mirae Asset Securities, and Industrial and Commercial Bank of China Financial Services filed an involuntary bankruptcy petition against Live Well on Monday in Delaware federal court, as they push to have a judge there put the company into Chapter 7 in order to search for and liquidate its remaining assets.
Flagstar, which is already suing Live Well and founder Michael Hild in Michigan, claims it is owed at least $69 million.
Industrial and Commercial Bank of China claims it is owed at least $40 million. And Mirae claims Live Well owes it at least $22 million.
Involuntary bankruptcy filings are typically made by creditors of a company to have a judge determine whether bankruptcy is warranted. The company would then have a chance to argue its case. If the judge agrees with the initial petition, a trustee would likely then be appointed to determine the state of the company’s assets, preserve them and potentially liquidate them to dredge up funds for creditors.
The filing comes about a month after Live Well abruptly shut it doors and laid off its workforce of more than 100 with apparently little notice. The company had been among the Richmond region’s fastest growing companies in years past.
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