Stonepath creditors agree to Chapter 7 case dismissal; creditors to target subsidiary MGR

By Caroline Salls

Pittsburgh, May 31 - Stonepath Group, Inc. and its involuntary Chapter 7 bankruptcy petitioners asked the U.S. Bankruptcy Court for the District of Delaware to dismiss the case against Stonepath and to allow the petitioning creditors to instead file an involuntary case against MGR, Inc., according to a Thursday court filing.

As previously reported, petitioners Spherion Corp., Custom Transfer Inc. and Overbye Transport Inc. made the involuntary Chapter 7 filing on May 8, but Stonepath has since found out that the petitioners are actually creditors of MGR, which is a subsidiary of Stonepath Logistics Domestic Services, Inc.

Stonepath Group is the parent of Stonepath Logistics.

According to the motion, Stonepath informed the petitioners that they are only MGR creditors. As a result, the petitioners agreed to the dismissal of Stonepath's case and instead intend to file an involuntary case against MGR.

In exchange for the case dismissal, Stonepath has agreed not to object to the filing against MGR.

A hearing is scheduled for June 21.

Stonepath is a Seattle-based logistics company. Its Chapter 7 case number is 07-10643.

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