Reported 10 days ago
Cornell Capital LLC, the former owner of Instant Brands, is being sued for allegedly misleading lenders to secure a $345 million dividend, which contributed to the company's bankruptcy. The lawsuit, filed by a trustee in Texas bankruptcy court, claims that the dividend was excessively funded and that its management provided unrealistic forecasts to support it. Ultimately, Instant Brands ran out of cash and filed for Chapter 11 bankruptcy in June 2023, leaving creditors with significant losses.
Source: YAHOO