Shadow Tree Capital Management filed with the U.S. Bankruptcy Court an emergency motion to convert Hydrocarb Energy Chapter 11 reorganization cases to liquidation under Chapter 7.
The motion explains, “Since the Petition Date, the only revenue generated by the Debtors has been from the sale of oil and gas produced by the Debtors prior to the Petition Date. The Debtors have not been able to locate third party financing or equity prior to the Petition Date. The Debtors will run out of cash shortly. To date, the Debtors have been unable to secure viable post-petition financing to operate the Debtors’ business in chapter 11.”
The conversion motion continues, “In the absence of additional third party financing or equity, the Debtors have no business prospects that could justify the continuance of their reorganization efforts. Accordingly, the Secured Lenders request that the Court convert these cases to cases under chapter 7 of the Bankruptcy Code.” Read more green energy bankruptcy news.
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