The U.S. Bankruptcy Court approved Shadow Tree Capital Management’s emergency motion to convert Hydrocarb Energy Chapter 11 reorganization proceeding to a liquidation under Chapter 7.
The order states, “For the reasons stated on the record pursuant to Bankruptcy Rule 7052, these jointly administered cases are converted to chapter 7. As discussed on the record, a representative of the Debtor is authorized to sign and file the Debtors’ chapter 11 schedules no later than Friday, May 13, 2016.”
As previously reported, Shadow Tree Capital Management sought case conversion on the following grounds: “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.”
This oil and gas explorer and development company filed for bankruptcy protection on April 13, 2016, listing $31 million in pre-petition assets. Read more green energy bankruptcy news.
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