Professor Ayer Comments on Bankruptcy for San Diego Union-Tribute
Professor John D. "Jack" Ayer commented for the San Diego Union-Tribune on the bankruptcy case involving San Diego Hospice Corporation, a tax-exempt organization established in the '70s to serve dying patients. The organization filed for bankruptcy in February, leading to questions as to whether creditors will have access to assets of the San Diego Hospice Foundation, a separate but related entity set up in 1985.
Professor Ayer said that while it may be difficult for creditors to stake a claim to foundation assets, they may be able to convince a judge they are entitled to a share of the endowment. "If they ran these two outfits as if they were one, they ought to be treated as one," Ayer said.
John D. Ayer is a professor emeritus at the UC Davis School of Law and an expert in bankruptcy law.
San Diego Union-Tribune