Casper Arms, Inc.

In re
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF WYOMING
CASPER ARMS, INC.,
Debtor.
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Case No. 	10-20452
Chapter 	7
OPINION GRANTING INVOLUNTARY CHAPTER 7 PETITION
On March 2, 20 11 this matter came before the court for an evidentiary hearing on
the Involuntary Petition. The court having reviewed the record, testimony and evidence
shall grant the involuntary petition.
Jurisdiction
The Court has jurisdiction under 28 U.S.C. §§ 1334 and 157(a). 1 This is a core
proceeding under 28 U.S.C. § 157(b)(2). Petitioning creditors bring this action under 11
U.S.C. § 303.
Discussion
The involuntary petition was filed on April26, 2010 against Casper Arms, Inc.
("Casper Arms") by three creditors: Robin Dale Ekler ("Ekler"), Adam Webber
("Webber") and Mounting Solutions Plus ("MSP") (collectively known as the
1 Unless otherwise indicated, all future statutory references are to the Bankruptcy Code, Title II of the
United States Code.
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"Petitioning Creditors"). 2
An involuntary bankruptcy case is commenced against a person with 12 or more
creditors by,
"three or more entities, each of which is either a holder of a claim
against such person that is not contingent as to liability or the subject of a
bona fide dispute as to liability or amount.. .if such noncontingent,
undisputed claims aggregate at least $14,425 3 more than the value of any
lien on property of the debtor securing such claims held by the holders of
such claims. "4
For creditors to successfully petition for involuntary bankruptcy, the bankruptcy
court must determine that: (1) the creditors have standing; and, (2) that the debtor
generally has not been paying his debts as they become due.5 A petitioning creditor does
not have standing if its debt is subject to a bona fide dispute. In the Tenth Circuit, a bona
fide dispute is defined as "whether there is an objective basis for either a factual or legal
e petttlon or mvo un ary 	an 	1p1cy lS e 	e o owmg	£. 	It 	b 	krut 	l'tdth £11 	three ere 1 ors an c atm amoun s:	d I . 	t
Name 	Principal Amount 	Nature of Claim
Robin Dale Elker 	$184,115.33 	Loan
Mounting Solutions Plus 	$8,709.00 	Sales of Products
Adam Webber 	$9,000.00 	Purchase of Gun
3 The dollar amount represents an adjustment made pursuant to 11 U.S. C. § 104 on April 1, 2010, which
applies with respect to cases commenced on or after April!, 2010. The Petitioning Creditors pled the incorrect
amount. For the purpose of considering the standing of petitioning creditors the court uses the dollar amount shown.
4 §303(b)(l).
5 Bartmann v. Marverick Tube Corp. et al., 853 F.2d {10 1h Cir. 1988).
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dispute as to the validity of the debt. The bankruptcy court does not determine the
probable outcome of the dispute, but merely whether one exists. 'l6
If the court determines that three qualified creditors have petitioned for involuntary
bankruptcy, it must then determine whether the creditors have met their burden of proof
that the debtors are not paying their debts as they come due? In determining whether the
creditors met this burden, the bankruptcy court should examine the totality of the
circumstances, balancing the interest of the debtor with those of the creditors.
1. 	Determination of standing
a. 	The status of Robin Dale Ekler ("Ekler") as a petitioning creditor.
Mr. Ekler petitioned as an unpaid creditor based upon the results of the dissolution
the marriage between Margaret Ekler Munson ("Munson") and Ekler. During the time
that Munson and Ekler were married, Casper Arms was formed as a Wyoming
corporation owned by Munson. Mr. Ekler assisted in the purchase of the assets by: (1)
monetary contributions; (2) loans in the amount of$184,115.33; and (3), the couples'
residence was used as collateral for a loan in the amount of $62,000.00 from First
Interstate Bank. Additionally, Mr. Ekler asserts that he paid various credit card debt that
was in the name of Casper Arms. As he was the guarantor on the credit cards, it was
necessary for him to pay the debts to preserve his credit rating. Mr. Ekler testified that he
6Bartmann at 1544.
7 §303 (h)(l).
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paid $7,500.00 in credit card debt that he claims as an additional claim against the Casper
Arms. Evidence presented at the hearing shows that Casper Arms' financial statement
entitled "Casper Arms, Inc. Grouping Schedule Report," as ofDecember 31, 2001, lists a
liability "Payable to Robin Ekler" in the amount of$184,115.33. Mr. Ekler testified that
he received theses funds from inheritances, distributed to him and subsequently invested
into Casper Arms. Ms. Munson did not provide testimony controverting Mr. Ekler's
claim. 	Without taking into consideration the other alleged debts owed to Ekler, the court
finds that based upon the evidence and testimony, Mr. Ekler has an undisputed, non-
contingent claim of$184,115.33 against Casper Arms and meets the requirement for
standing.
b. 	The status of Mounting Solutions Plus as a petitioning creditor.
The Petitioning Creditors allege that Casper Arms owes MSP the amount of
$8,709.00. Ms. Munson testified and conceded that Casper Arms owes MSP a sum of
$8,000.00 and that she has not paid the creditor.
c. 	The status of Adam Webber as a petitioning creditor.
Ms. Munson conceded that Casper Arms received $9,000.00 from Webber which
was deposited into the Casper Arms bank account. The funds were for the purchase of a
firearm. 	The firearm has not been delivered to Webber, nor the funds returned. Mr.
Webber meets the standing requirement.
In conclusion, the court finds that the "three-petitioning-creditor rule" has been
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met. The Petitioning Creditors have standing to pursue the involuntary bankruptcy.
2. 	The requirement of a finding of insolvency under §303(h)(l).
After the court determines the standing issue, it must then determine if the debtor
is paying its debts as they become due. Ms. Munson testified that she does not have the
funds to pay rent, utilities or credit card bills for Casper Arms. Based on Ms. Munson's
own testimony, the court finds that Casper Arms is not paying its debts as they become
due.
Conclusion
It is the court's conclusion that there are three qualified petitioning creditors, Ekler,
Webber and MSP, with an aggregate debt of at least $20 1, 115.3 3. This is well above the
required amount of$14,425.00. Additionally, the court finds that Casper Arms is not
paying its debts as they become due. Therefore the court concludes that the involuntary
petition shall be granted and an order for relief entered.
This opinion constitutes the Court's findings of fact and conclusions of law. A
separate order shall be entered pursuant to Fed. R. Bankr. P. 9021.
DATED this~ day ofMay, 2011.
By the Court
Service to:
All on the matrix
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