The U.S. Bankruptcy Court approved MediaShift’s second motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including September 26, 2016 and November 23, 2016, respectively.
As previously reported, “The Debtors, on advice of counsel, advised the Committee that, unless the Committee determines, after its investigation, that there are viable litigation claims to pursue, including Alleged D&O Claims, with those claims potentially being assigned to the Committee to be pursued by counsel selected by the Committee on a contingency fee basis so that there is no risk of loss to the estates, the Debtors, on advice of counsel, intended to proceed with a motion for structured dismissal of the Cases. If on the other hand, the Committee determines, after its investigation, that it believes there are viable litigation claims to pursue, the Debtors will likely seek to proceed with a liquidating plan (or plans), which may be proposed jointly by the Debtors and the Committee. Given the current lack of funds available to make any distributions on allowed priority and general unsecured claims, and the ongoing investigation by the Committee regarding litigation claims that could be used to fund such payments and a plan or plans providing for such payments, and the uncertainty as to whether the Debtors will proceed with a plan or plans or a motion for a structured dismissal of the Cases, it would be wasteful at this juncture for the estates to expend fees and expenses to prepare, file, and serve a disclosure statement (or disclosure statements) and plan (or plans).”
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