Creditors File Involuntary Bankruptcy Petition against Scuttle’s Island Water Park

by San Antonio Attorney

Scuttle’s Island Water Park is supposed to open this year, but it has been a while since it was last updated.

Its Facebook Page says it will open on Spring 2016, but has no update since last year.  .

The site where Scuttle’s Island is supposed to operate has no lazy rivers or water slides.  It’s remains empty.

The park is supposed to be in North Augusta, a land owned by an Irish who resides in Murphy Village.

Although investors have been giving information about the project before, they have not provided new details.

According to reports, documents filed with the United States Bankruptcy Court reveal that Cedar Rock Holdings, the investment firm behind the $21 million project, has been forced to file for bankruptcy.

The creditors of the company filed an involuntary bankruptcy petition a week ago claiming more than half a million dollars in debt.

According to lawyers in the area, an involuntary bankruptcy petition is uncommon since the company or individual in debt is typically the one declaring bankruptcy, not the people or entities owed.

The impact of this move by creditors is still uncertain, but officials of North Augusta say they have never received any plans from the investment firm since they announced the project.

Involuntary bankruptcy is typically filed by unsecured creditors when they suspect deception on the part of a company, for example when a Ponzi scheme is exposed.  Otherwise, unsecured creditors will usually pursue debt collection of their individual claims directly, which includes filing a lawsuit in federal or state court.  It may “force” the company into voluntary bankruptcy.  The possibility of creditor liability for expenses, damages, and attorney’s fees makes involuntary petitions a rarely used tool by creditors.

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