Aubrey McLendon was an Oklahoma City businessman who made his fortune in the energy business. He died in a March auto accident the day after he was indicted for allegedly rigging the price of oil and gas leases. He also owned 20% of the Oklahoma City Thunder. Attorneys for one of the lenders to his business have already filed motions in the probate court asking for input into the sale price of his interest in the NBA team. They fear the estate will sell it to his widow for less than the maximum price even though it is not currently for sale. They stated that the primary purpose of the probate court is to protect the interest of creditors.
Several quick points:
1. Under Ohio law, creditors have six months from the date of death to file a claim to protect their interest.
2. Once the claim is filed, they sit back and wait for the estate to be settled. Distributions may not be made until the creditor’s claim has been paid.
3. I love it when high priced corporate lawyers bring their white shoes, prestigious degrees, high billable rates, and commensurate bluster to the serene probate area where the purpose, contrary to their belief about protecting creditors, is to ensure the orderly transfer of assets pursuant to a decedent’s wishes in due time. Actually, I do not love it – I find it annoying.