The Aliera Companies, Inc., based in Atlanta, filed for chapter 11 protection on Tuesday, Dec. 21 in the Bankruptcy Court for the Northern District of Georgia, after an involuntary proceeding
was filed against it on Dec. 3 in Delaware. Aliera reports $1 million to $10 million in assets and $500 million to $1 billion in liabilities. The debtors are represented by Scroggins & Williamson in Atlanta. The case number is 21-59493. The case has been assigned to Judge James R. Sacca.
According to the petition, on Oct. 4, Aliera transferred all of its assets to Asset Recovery Associates Aliera, LLC as assignee for the benefit of creditors.
The list of largest unsecured creditors includes a $574.7 million claim held by Sharity Ministries, Inc. related to an adversary proceeding. The next two largest creditors are petitioning creditors in the involuntary case, each holding default judgments, as follows: (a) Gerald and Roslyn Jackson in the amount of $21.4 million and (b) Hanna Albina and Austin Willard in the amount of $4.7 million.
The petitioning creditors have secured judgments based on contracts entered into with Aliera designed to pay medical expenses on the determination of certain contingencies. According to a default judgment against Aliera attached to the previously filed involuntary petition, “Aliera held itself out as providing health care sharing ministry” products of Trinity HealthShare, Inc. (now known as as Sharity Ministries, Inc.), but Trinity did not qualify under federal law as a health care sharing ministry (a medical cost-sharing arrangement among persons of similarly and sincerely held religious beliefs). A default judgment entered against Aliera attached to the involuntary petition finds that Aliera “misled the class members into entering contracts for a product that was not what it purported to be and did not comply with applicable federal or state law.”
A list of additional debtors follows:
Reorg First Day will provide a full summary once the first day briefing is complete.