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Magnetation Bankruptcy Dismissal Sought

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Magnetation filed with the U.S. Bankruptcy Court a motion to dismiss its Chapter 11 case.

The Debtors assert, “Since the Debtors are administratively insolvent, there can be no chapter 11 plan. Dismissal is warranted because remaining in chapter 11 would only cause administrative expenses to continue to grow and further diminish creditor recoveries. Similarly, converting these cases to chapter 7 would increase administrative expenses and delay the creditors’ recoveries without any prospect of enhancing them. A function of a chapter 7 proceeding is to monitor the disbursement of remaining funds to unsecured creditors.”

In addition, “There are no funds available for payment to unsecured creditors in these cases, therefore, there is no benefit to converting to chapter  Consequently, the Debtors believe it is in the best interests of creditors to dismiss these cases following the payment of pro rata distributions on account of valid administrative expense claims.”

The Court scheduled an April 19, 2018 hearing on the motion.

Read more Magnetation bankruptcy news.

The post Magnetation Bankruptcy Dismissal Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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