Texas judge mulls whether to dismiss NRA's bankruptcy petition

May 04, 2021 at 00:51

(CNN) —For nearly a month, attorneys have argued over whether the National Rifle Association’s petition to file for bankruptcy in Texas should be dismissed, and whether its business dealings should be overseen by a court-appointed trustee or an examiner.
“The NRA does not have a debt problem … it has a regulatory problem.”James’ office has asked Hale to dismiss the bankruptcy case with prejudice, so that the NRA cannot refile for bankruptcy in another venue.
In January, the NRA filed for bankruptcy and as part of its petition sought to be reincorporated in Texas, a move that came five months after James’ office filed a suit seeking to dissolve the organization.
LaPierre testified during the 12-day-long bankruptcy trial that he currently makes $1.3 million, after taking a 20% pay reduction “voluntarily” when the organization had to make cuts to other employees’ salaries last year.
“I think my compensation has always been reasonable,” LaPierre testified on Thursday.
He also testified that he believes the NRA “is in a much better place today.”“I think it’s stronger.
I think the controls are stronger,” LaPierre testified.
I feel very good about where we are.”James’ office argued that if Hale does not dismiss the NRA’s bankruptcy petition, he should appoint a trustee to monitor the financial operations of the organization, saying that “there is evidence of fraud, dishonesty, incompetence and mismanagement” by current leadership.
Garman denied on Monday that the NRA’s bankruptcy filing was a strategy to avoid the New York attorney general’s litigation and pointed to a letter from New York Gov.
Andrew Cuomo directing his administration to urge companies to “weigh reputational risks” for business ties with the NRA in 2018.
“If this case is not dismissed, your honor, it’s going to throw a monkey wrench into the gears of federalism.
It will throw gasoline on the ideological fires that are already raging out of control in this country,” Mason said.