Linqto Manufactured Bankruptcy in Texas, Shareholder Says (1)

Collapsed fintech startup Linqto Inc. should have its bankruptcy proceedings transferred to Delaware after it schemed, without telling shareholders, to manufacture a bankruptcy case in Texas, major investor Sapien Group USA LLC said.

Sapien, run by former Linqto director Victor Jiang, on Wednesday urged the US Bankruptcy Court for the Southern District of Texas to send the company’s one-week-old Chapter 11 case out of the district, saying it has no basis there.

Although Linqto was incorporated in Delaware and operated out of California, the current board furtively created a shell company in Texas in early April “for the apparent purpose ...