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

Westech Capital Trustee Appointed

0
0

The U.S. Bankruptcy Court approved Westech Capital’s equity security holders’ motion for the appointment of a Chapter 11 trustee.

As previously reported, “Movants seek the appointment of a trustee under 11 U.S.C. sections 1104, which provides for two distinct grounds for appointment, both of which warrant the appointment of a trustee in this case. First, there is cause, including fraud, dishonesty, incompetence, and gross mismanagement of the affairs of Debtor before and after the commencement of the case, or similar cause. Second, the Debtor and its control persons are untrustworthy and riddled with conflicts such that an independent trustee is in the best interest of the estate, the equity holders, and the parties in interest and the creditors. This Chapter 11 Proceeding was filed by conflicted control persons, who seek to maintain control of the Debtor, despite the fact that the certified schedules of the Debtor confirm that Debtor is presently: (1) a non-operating entity; (2) has substantial cash on hand; and (3) has scheduled assets that substantially exceed its listed debts…Movants contend that the primary purpose of the Chapter 11 filing is not to reorganize and obtain a ‘fresh start’ for the Debtor, but rather to absolve the conflicted control persons of substantial personal liability. Movants are non-executive, non-Board equity interest holders of Debtor.”

Read more bankrupt company news.

The post Westech Capital Trustee Appointed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images