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Kmart

In Kmart’s bankruptcy reorganization, we represented over thirty counties from the State of Georgia.  Kmart was trying to avoid paying these counties personal property taxes due for the inventory in Kmart’s stores.  County collectors, naturally unfamiliar with claims procedures in chapter 11 bankruptcy cases often failed to file their proofs of claims.  So Kmart sued over 500 counties, all in one suit, to try to eliminate property tax liability.  Here’s what we did:

• Successfully moved to dismiss the 500 county lawsuit, forcing Kmart to file separate suits against each county
• Successfully claimed that proofs of claims were not needed until the taxes actually were due and payable
• Negotiated settlements of tax claims resulting in payments of over $10 million to the various counties.

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