Oakridge Holdings filed with the U.S. Bankruptcy Court a motion for a 120-day extension of the exclusive period during which the Debtors can file a plan through and including January 16, 2018.
The motion explains, “The Debtors have made significant progress towards reorganization. They have obtained crucial post-petition financing to begin working on the backlog of orders accumulated when their bank financing dried up and Stinar was not able to buy parts and other inventory to allow them to complete the work they accumulated. There is significant progress being made towards bringing Stinar back to life as can be seen by the monthly financials which show increases in sales and the projections…However, the Debtors cannot reasonably prepare plans for reorganization under the circumstances by September 18, 2017.”
In addition, “Therefore, more time needs to pass to be able to gather the information necessary to determine the length of time it will take to pay off creditors and provide certainty for any exit financing. As to Oakridge, all funds needed to pay creditors will come from Stinar and therefore the ability to organize Oakridge (a liquidating plan is likely) cannot be prepared until the Stinar plan is prepared. Meanwhile presentation of alternate plans by other parties, although unlikely, would undermine the ability of Debtor to concentrate on its operations and likely would not allow payment of creditors in full.”
The Court scheduled a September 13, 2017 hearing to consider the motion.
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