SvenskaHandelsbanken (Handelsbanken) filed with the U.S. Bankruptcy Court an objection to Ezra Holding’s motion for an exclusivity extension. The objection asserts, “Handelsbanken is an unsecured creditor of Debtor Ezra Holdings, pursuant to a loan extended by Handelsbanken to Ezra in July 2015. As of the petition date of these Cases, the aggregate principal amount of the loan, plus accrued and unpaid interest and all other amounts payable thereunder, consisted of no less than $12,635,763.88.”
In addition, “Although the Debtors claim to have the estates’ and creditors’ best interests in mind in seeking a second extension of the Exclusive Periods, the estates are burning cash that could be used to fund a plan process and satisfy creditor recoveries. Notwithstanding that the Debtors have sufficient cash to fund the Cases, those funds are being used for administrative expenses, rather than achieving a process to make distributions to creditors….Surely, options exist for the Debtors to maximize creditor recoveries in these Cases in the near term. For instance, the Debtors could conduct a transparent, court-supervised sale process to sell the Debtors’ most valuable operating assets….Alternatively, the Debtors could reorganize, and any assets derived from the Debtors’ affiliates would be belong to the reorganized entities. The Second Exclusivity Motion fails to explain why such options are not feasible.”
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