Lucky Dragon Hotel & Casino filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “In order to facilitate its quick emergence from bankruptcy, the Debtors retained Innovation Capital, LLC (‘Innovation’), as its financial advisor. The Debtors, through Innovation, continue to market the Property and the Resort to interested parties, many of whom expressed interest in the assets and in amounts that would pay Snow Covered in full. Indeed, as of the date hereof, Innovation contacted 279 parties in connection with the marketing of the Debtors’ assets, facilitated the execution of 13 non-disclosure agreements for parties interested in a purchase or transaction with the Debtors to review the relevant information necessary for interested parties to formulate an offer. In addition, 16 parties expressed interest in the Debtors and their assets, and are currently negotiating a nondisclosure agreement. Importantly, through consummation of the Plan, the Debtors anticipate facilitating a reorganization strategy that not only protects Snow Covered’s secured claims, but provides unsecured creditors an opportunity to recover for their claims, and gives EB-5 Investors an opportunity to preserve their investments, to the extent each are possible. Accordingly, the Debtors believe confirmation and consummation of the Plan is the best opportunity for all interested parties to preserve and maximize the value of the Property and the Resort. If confirmed and consummated, the Plan will eliminate millions of dollars of debt from the Debtors’ balance sheets and permit the Debtors to: (i) maintain ongoing operations without the unsustainable burden of their existing debt load; or (ii) allow a new party to purchase the Property and assume control of the operations at the Resort. Finally, the Debtors believe that the classification and treatment of parties contemplated by the Plan maximize stakeholder recoveries and preserves the possibility of ongoing operations of the Resort for the benefit of numerous parties-in-interest in this jointly-administered Chapter 11 Case.”
Read more bankruptcy news.
The post Lucky Dragon Hotel & Casino Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.