BankruptcyData’s detailed analysis and summary of US Dataworks’ Combined Disclosure Statement and Plan of Liquidation, dated October 2, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on November 29, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The Plan proposes to pay creditors of the Debtor from the proceeds of the sale of substantially all of the Debtor’s assets. Debtor believes that the proposed financing and other relief sought will enable the Debtor and its stakeholders to implement an orderly Liquidation through its chapter 11 bankruptcy case. The proposed financing will also allow the Debtor to meet some of its immediate cash needs for operations generally as well as provide funding to keep current projects alive thereby preserving its going concern value for the benefit of its Estate.”
In addition, “In sum, the Debtor sought chapter 11 protection in order to protect and preserve its assets and ongoing operations, and to allow it to bring in additional cash through post-petition financing in order to continue operations and affect an orderly restructuring. The Debtor has determined in the prudent exercise of its business judgment that the commencement of the chapter 11 case and the proposed DIP financing is the best alternative to ensure that maximum value can be preserved and realized for the benefit of its Estate constituents. July 20, 2017, the Debtor sold its business assets to a subsidiary of Bankers Bancorp of Oklahoma, Inc. The price for the assets to be purchased is $1,790,000.”
BankruptcyData premium subscribers receive access to the full summary, which provides further details on corporate background, events leading to US Dataworks’ May 1, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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