The U.S. Bankruptcy Court issued an order approving Uni-Pixel’s motion to convert its Chapter 11 reorganization case to a liquidation under Chapter 7.
The order states, “The case of Uni-Pixel, Inc. (Case no. 17-52100) and the case of Uni-Pixel Displays, Inc. (Case no. 17-52101) is converted from chapter 11 to chapter 7….The United States Trustee shall appoint a Chapter 7 trustee in each of the cases and is authorized, but not ordered, to appoint a single trustee in both of the converted cases in the interests for economy and efficiency.” As previously reported, “The interests of the creditors and the estate would be best served by conversion to chapter 7 because unnecessary costs and expenses associated with a chapter 11 case would be avoided, and the Debtors’ assets have been sold.”
In addition, “The major administrative expenses have been resolved and paid. The chapter 11 professionals, KEIP participants, and Santa Clara landlord have been paid their administrative expenses….ounsel for the Debtors currently holds approximately $140,000 in its client trust account. Unless otherwise ordered, the Debtors will turn over this money to the chapter 7 trustee upon conversion of the cases….Since Western Alliance Bank has been paid in full, all of the remaining debts related to operations of the Debtors’ business were incurred by Displays. The only significant obligation of Uni-Pixel, appears to be to the SEC. Under these circumstances, it would be most efficient for a single chapter 7 trustee to administer both chapter 7 estates.”
This electronic components’ manufacturer filed for Chapter 11 protection on August 31, 2017, listing $11 million in pre-petition assets.
Read more Uni-Pixel bankruptcy news.
The post Uni-Pixel Bankruptcy Liquidation Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.