Euclid Claims Recovery filed with the U.S. Bankruptcy Court a motion to appoint Chapter 11 trustee to the Premier Exhibitions case.
Euclid Claims Recovery asserts, “As this chapter 11 case approaches its two-year anniversary, it is extremely concerning that the debtor-in-possession has failed to propose even an initial plan of reorganization or disclosure statement. This failure is particularly vexing to estate creditors in light of the following circumstances, among others….The incurring of aggregate fees and expenses of chapter 11 professionals approaching $5 million without yielding any return for creditors in this case involving pre-petition unsecured claims of approximately $12 million; Substantial and continuing loss to and diminution of the estate as a result of the funding of post-petition administrative losses through a $5 million super priority lending facility under which $4.2 million was reported to be outstanding as of March 31, 2018….It is absolutely confounding that the debtor has refused to pursue an auction-house sale of individual French Artifacts.”
In addition, “Indeed, such a sale may represent the only means to achieve full payment to creditors at this stage of the case given the extent of administrative expense losses that the debtor has allowed to pile up. It is not productive at this juncture to speculate on the motivation or agenda for the actions by the debtor in the administration of this case that have been so ineffective and harmful and by which it has unquestionably forfeited any right to continue as a fiduciary debtor-in-possession. What is clear, for all the foregoing reasons, is that it is time to appoint a qualified, disinterested chapter 11 trustee to immediately and actively explore and implement a prompt, value-maximizing chapter 11 exit and to impose some long-overdue discipline on the runaway.”
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