New Chapter 11 Filing – Navient Solutions, LLC
On February 8, 2021, creditors filed an involuntary petition against Navient Solutions, LLC, the servicing arm of Navient Corporation, which manages nearly $300 billion in student loans for more than 12 million debtors after its 2014 split from Sallie Mae. The Petitioning Creditors, who previously owed student debt serviced by Navient, allege insolvency based on, among other things, pending lawsuits that allege the Putative Debtor “misappropriated $4 billion” from the U.S. government and questions over the status of its federal servicing contract. The Petitioning Creditors allege that the Debtor holds $87.4 billion in assets and $85 billion in liabilities. A copy of the involuntary petition and the Petitioning Creditors’ statement in support of the involuntary petition can be found here.
Cole Schotz does not represent the Petitioning Creditors or Putative Debtor in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Petitioning Creditors’ or Putative Debtor’s counsel.
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As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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