DirectBuy Holdings filed with the U.S. Bankruptcy Court a motion for entry of an order dismissing the Debtors’ Chapter 11 proceeding.
The motion explains, “The Debtors commenced these Chapter 11 cases to preserve their business as a going concern and maximize the value of their assets through a sale transaction. The Debtors achieved that goal and, in February, 2017, closed a sale of substantially all of their business assets. After the closing, the Debtors, Committee and Pre-Petition Secured Parties entered into a settlement that enabled the Debtors to pay administrative expense claims not assumed in connection with the sale and otherwise administer these Chapter 11 cases. That settlement positioned the Debtors to exit from Chapter 11. As this juncture, the Debtors and the Committee have discussed the most efficient way to conclude the Chapter 11 Cases.”
In addition, “After carefully considering the alternatives, and given the completion of the sale and the lack of any remaining assets to monetize, the Debtors have decided that dismissal is the most effective way to proceed as they are unable to propose and confirm a plan. In any event, confirmation of a plan of liquidation will take too long, be too expensive and substantially increase administrative costs. Conversion of these cases to Chapter 7 merely will add another layer of administrative expenses without any benefit to the Debtor’s unsecured creditors. Bases on these circumstances, dismissal makes the most practical and economic sense.”
The Court scheduled a July 18, 2017 hearing to consider the motion, with objections due by July 5, 2017.
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