Rudy Giuliani filed documents Monday seeking to convert his Chapter 11 bankruptcy reorganization proceedings into a Chapter 7 liquidation of his assets in the face of staggering liabilities and so far unsuccessful efforts to launch an of appeal the $148 million defamation judgment that has his finances on the ropes.
The motion and proposed order submitted for U.S. Bankruptcy Judge Sean Lane to sign comes after attorneys for the Official Committee of Unsecured Creditors, representing Noelle Dunphy, defamed Georgia election worker Shaye Moss, and Dominion Voting Systems, broadened their subpoena efforts, sought sanctions and asked the judge to hold Giuliani in contempt for failing to comply with court orders, and requested that a trustee “immediately” be appointed to take control of and oversee his finances and business operations.
Under the attached proposed order, the U.S. Trustee’s Office would appoint a trustee that would liquidate Giuliani’s assets — for example, his New York and Florida properties — and the proceeds would be used to pay his creditors.
“[I]t is further ORDERED that until a Chapter 7 Trustee takes possession of the Debtor’s books and records, the Debtor shall not transfer or dispose of any records, property or assets of the Debtor, and that all assets shall remain at the Debtor’s premises,” the document said.
The U.S. Courts note that a Chapter 11 debtor, such as Giuliani, “has a one-time absolute right to convert the chapter 11 case to a case under chapter 7 unless: (1) the debtor is not a debtor in possession; (2) the case originally was commenced as an involuntary case under chapter 11; or (3) the case was converted to a case under chapter 11 other than at the debtor’s request. 11 U.S.C. § 1112(a).”
Giuliani is a debtor in possession of property who voluntarily filed for Chapter 11 bankruptcy.
Giuliani advisor Ted Goodman said in a statement on the former NYC mayor’s behalf that the move amounts to “simply following available options to combat an entirely partisan and politically motivated proceeding.”
“Make no mistake, this is directly connected to the Biden regime’s ongoing efforts to take down President Trump and anyone willing to stand up against them,” Goodman said. “I can promise you this. No matter what they do, they can’t take away Mayor Giuliani’s most important assets — integrity, courage and love for America. And just like Steve Bannon and others, they’re trying to silence Mayor Giuliani. Well, good luck with that.”