Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Erin Energy Chapter 7 Conversion Sought

0
0

Erin Energy’s Official Committee of Unsecured Creditors filed with the U.S. Bankruptcy Court a motion to convert these Chapter 11 cases to cases under Chapter 7. The Committee asserts, “‘Cause’ exists to convert these cases to cases under chapter 7 because the Debtors have experienced substantial and continuing losses and it’s unlikely that the Debtors’ business can be rehabilitated. Indeed, the following facts are undisputed: The Debtors have virtually no cash (other than the four-week lifeline provided by the interim debtor-in-possession financing); The Debtors’ previous motion for the use of cash collateral was denied; The Debtors have not generated any revenue since the fall of 2017; The Debtors have incurred millions of dollars of monthly expenses during these cases, generating substantial losses; The Debtors have not been profitable, and have experienced continuing losses, since at least 2016; According to the Debtors’ financial advisor, the Debtors will not have any third-party financing in place on July 6, and will not engage in substantive discussions concerning possible financing prior to that time; The Debtors’ prior business plan (presented on May 28 in connection with the Cash Collateral Motion, but apparently abandoned) was built on a series of flawed assumptions and was not credible; and Even if the Debtors prevail in the litigation pending in Nigeria on July 6, disputes over title to the assets may remain, preventing any sale of such assets. The Debtors have no viable path forward and should not be permitted to gamble with creditors’ money. For these reasons, and for those that will be established at trial, the Motion should be granted.”

Read more bankruptcy news.

The post Erin Energy Chapter 7 Conversion Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images