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.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.