Texas counties say bankrupt Scooter Store owes tax liens

Friday, August 16, 2013

NEW BRAUNFELS, Texas  - Three Texas counties want a bankruptcy judge in Delaware to reject The Scooter Store’s request for final relief orders because they say the company owes them $35,000 in unpaid tax liens, Law360 reports.

Dallas, Harris and Nueces counties objected to the struggling company’s bid for final orders authorizing cash collateral and instead want the court to give priority to the debts they are owed.

In an objection, the counties wrote, “The debtors are preferring one secured creditor at the expense of another, which is not how a proper fiduciary acting to benefit all creditors of the estate should act.”

According to Law360, the Texas counties want Peter J. Walsh, U.S. bankruptcy judge, to reject The Scooter Store’s request unless the company protects the interests of the liens and the counties in proceeds from the sale of the company’s collateral.