Thursday, July 5, 2001
In a ruling that promises to have a major impact on the future of Liberty Lobby, Judge Martin Teel of the Washington, DC, bankruptcy court this morning denied a motion to prevent collection attempts by Liberty Lobby’s creditors. On Tuesday, June 26, Teel had ruled that Liberty Lobby’s latest Chapter 11 bankruptcy filing was in bad faith, and refused to allow them bankruptcy protection. In a last-ditch effort to avoid paying creditors, Liberty Lobby then filed a pathetically defective motion asking the court to “stay” collections until they could appeal Teel’s decision. In denying this motion, Teel made it clear that he expects a receiver to take over Liberty Lobby. Apparently anticipating this ruling, Liberty Lobby’s weekly tabloid, The SPOTLIGHT, blasted U.S. bankruptcy courts as being corrupt, and announced that that its latest (July 9th) issue is its last.