Seems Like Fortgang Hasn’t Given Up On The Fabrikant Case
The great diamond company, M. Fabrikant and Sons has just gone bankrupt leaving members of the Fortgang family, former owners of the company fighting a case. Court papers stated that a week after the judge had ordered all of the family’s possessions taken away from them, they had won a hearing and were granted monthly “personal allowance.”
The court’s order that was made on June 18th by U.S. bankruptcy court judge Stuart Bernstein authorized U.S. marshals to make sure and confiscate possessions of the members of the Fortgang family, even if it means forcing their way into the family’s apartments on Fifth and Park avenues in Manhattan as required.
The order that was issued on June 18th was in response to a complaint filed by the Shared Assets Trust” of Fabrikant lenders and creditors, who are looking to recoup assets.
Lenders and creditors state that members of the Fortgang family abstracted funds to link companies before file for chapter 11-bankruptcy protection.
However, while the June 18 order was going through, Hunter Carter of Arent Fox LLP, attorney of the Fortgang family sent a letter to judge Bernstein asking for a hearing on the issue. Fox stated that his clients “stand to be irreparably damaged by some of the provisions” included in the order.
According to court documents filed on June 24th Fox’s request for a hearing had been granted.
As they wait for their hearing, Matthew, Charles, Susan, Marjorie and Theresa Fortgang won the right to monthly personal allowance of funds from their respective banks.
The family members will also be asked to give evidence in the case, and their lawyers are cooperating with requests for discovery regarding the suspected change of funds.Â