The U.S. Trustee assigned to the Escalera Resources case filed with the U.S. Bankruptcy Court a motion to dismiss the case or convert the Chapter 11 reorganization to a liquidation under Chapter 7 for the following reasons: There appears to be a substantial or continuing loss to or diminution of the estate as well as an absence of a reasonable likelihood of reorganization and there is undue delay in confirming a plan, which is prejudicial to creditors and parties in interest.
The motion explains, “The last Monthly Operating Report filed for period ending November 30th of 2017 reflected a cumulative net loss of ($25,338,067). The Debtor’s most recent Balance Sheet attached to the November 2017 MOR reflects post-petition liabilities of $5,077,751. The Debtor’s post-petition liabilities have increased steadily since the Petition Date….Debtor has not confirmed a chapter 11 plan and no disclosure statement is approved, causing undue delay. The Debtor’s Chapter 11 plan filed nearly two years ago appears to be abandoned. Debtor has not consummated a sale of all of its assets and the Debtor appears to be languishing in chapter 11.”
In addition, “In the event that the Court determines that this case is to be converted to chapter 7 pursuant to section 1112(b)(1), a chapter 7 trustee could investigate the assets and financial affairs of the Debtor and bring any actions as may be appropriate.” The Court established a January 31, 2018 objection deadline.
Read more bankruptcy news.
The post Escalera Bankruptcy Dismissal, Conversion Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.