Regency Stamp Auctions In St. Louis

Maybe the attorney is not getting paid...

A wild guess is that there is nothing left for consignors. But as long as no one has filed for bankruptcy we lack information concerning the financial status. I just toss a ball to you: Any chance for action here? Or is this just another far fetched idea? Living in Norway I do hope for some local help to get to the bottom of this obscure case.

Anyone think of contacting Wayne Youngblood, past manager of Regency-Superior thru Linn's to find what state Regency-Superior is Incorporated? Bankruptcy filing is normally done in the state of incorporation which may be Los Angeles or New York. Also, the name "Regency-Superior" name be a vertical operation to a holding corporation, which has filed the actual bankruptcy.

https://bsd.sos.mo.gov/BusinessEnti...SearchType=0

Regency Superior is a Missouri Corporation and according to the Missouri Secretary of State they are in "Good Standing" as of 10/12/17 - which basically just means they paid the filing fee.

A distressed company has no obligation to use federal bankruptcy for dissolution or reorganization. It's usually done as a defense to actual or threatened litigation or inescapable obligations such as a bank calling in a loan. If their bank has been fully satisfied by seizing RS funds on deposit at the bank, and no private suits are filed by consignors, they may well use a private assignment for benefit of creditors or other private dissolution with no court filings.

SPQR, that's very interesting.

If I remember Federal Bankruptcy Law correctly, three (3) creditors (of any size) can file a petition in Federal Bankruptcy Court (in the district the Corporation resides) against a company and force a company into Involuntary Bankruptcy, to find, seize and liquidate their assets, without a company's permission or filing. It also means IF the Creditor transferred Assets to another Company (sold/transferred Assets to another Stamp Company) then the Receiving Company becomes liable for those Assets to the original Creditors.

Involuntary cases apparently only can be filed against individuals, excluding farmers, and a very limited class of non-"moneyed, business or commercial" corporations. 11 U.S.C. § 303.

This may be an instance in which every consignor-creditor's claim is so small that it is outweighed by the cost of litigation. There may be no attorney willing to represent 50 or 60 consignors each with a claim of $500 to $25,000. It can't be done on contingency because there may be no collectible assets, and the fees generated by the litigation would drain the claims, each of which has different facts and proof required.

The "good standing" status only means that an annual report listing contact persons was filed as required by about July 31, 2017. The next one is due in July 2018 and a state tax return should be due in April 2018. I see this going away quietly by the summer of 2018. The only thing that would change that would be a deep-pocketed consignor who sues "on principal" without concern for his/her legal fees exceeding his claim or recovery.

What cjpalermo said. In addition to the legal obstacles he mentioned, as a practical matter there's almost no way an involuntary bankruptcy could happen.

Is MO small claims court a viable option? The limit is $5,000.

I'm sure creditors could probably get a small claims court judgment, maybe even by default. But a judgment is really just a piece of paper. Locating assets and collecting on the judgment is another matter and might be impossible or prohibitively expensive.

cjpalermo1964 Thank you for the clarification.

and there won't be - they will continue to ignore you since you are not a lawyer

So does that mean that any company can renege on their financial obligations to their consignors whenever they feel like it and not have to declare bankruptcy?

Well if they have assets, creditors are going to attempt to seize those assets. But if they don't, then they can be insolvent and not file for bankruptcy. If fact, they can be so close to insolvency (or have assets that are hard to attach) that it isn't work chasing them. And stay in businesses like that FOR years.