The U.S. Bankruptcy Court issued an order dismissing PhaseRx’s Chapter 11 proceeding.
As previously reported, the Company sought dismissal, arguing, “Having sold substantially all of its assets, rejected the unexpired leases of non-residential real property and executory contracts that were not sold, and identified all known chapter 11 administrative claims that will be paid in full, or as agreed between the parties, prior to the conclusion of the Chapter 11 Case, the Debtor seeks to dismiss this Chapter 11 Case in order to bring closure to not only the chapter 11 bankruptcy, but the Debtor’s corporate existence. Dismissal will allow all stakeholders to make a clean break from the Debtor and move on with other business relationships.”
In addition, “The Debtor strongly believes that dismissal is a more favorable result than conversion to a case under chapter 7 of the Bankruptcy Code as it will allow stakeholders to cease monitoring a bankruptcy case where there is no likelihood of any recovery under any circumstance. Dismissal is further warranted in a case such as this where there are a minimal number of creditors that are affected by the relief requested.”
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