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Westech Capital Disclosure Statement Filed

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Westech Capital’s Chapter 11 trustee filed with the U.S. Bankruptcy Court a First Amended Disclosure Statement related to the trustee’s Chapter 11 plan.

According to the Disclosure Statement, “Conversion of this case to a Chapter 7 liquidation will return less to creditors than the implementation and Confirmation of this Plan due to the additional lawyer of administrative expenses (on top of the existing Chapter 11 administrative expenses) that will be generated by the Chapter 7 Trustee and the Chapter 7 Trustee’s counsel as they spend the significant time and effort needed to understand the myriad facts and issues surrounding the Debtor.”

In addition, “Also, the Plan contemplates continuing the Debtor’s business for an indefinite period of time to maximize the value of the NOL, and, in contrast, a Chapter 7 Trustee can only operate a business for a limited period of time, with court authorization, and the bankruptcy code contemplates such authorization only in a limited number of situations. Thus under the Trustee’s proposed Chapter 11 Plan, the Plan Trustee will have more flexibility and opportunity to monetize the NOL for the benefit of all creditors than a Chapter 7 Trustee would have.”

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The post Westech Capital Disclosure Statement Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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