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Constellation Enterprises Settlement Approval Sought

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Constellation Enterprises and its official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion for an order approving a settlement by and among the Debtors, the creditors’ committee, the purchaser and the ad hoc noteholder group.

The motion explains, “The Settlement before the Court marks a watershed moment in these cases. Since the Petition Date, nearly four (4) months ago, the Debtors have used their best efforts to broker a settlement between the key constituents in these cases. As the Settlement demonstrates, the efforts of the Settlement Proponents have paid off. The proposed Settlement provides the holders of general unsecured claims – a constituency which was indisputably out of the money when these cases began – with a pro rata share of $1.25 million, and the potential of additional recoveries based on the outcome of the potential prosecution of certain transferred claims and causes of action.”

The motion continues, “Without the Settlement, this result would likely be unobtainable. The Settlement also helps clear a path to a final disposition of these cases, as it eliminated potential and actual objections to the Sale Motion, and resolves the Creditors’ Committee’s objections to the DIP Motion. Absent the Settlement, it is likely that the Parties would have continued to litigate these matters potentially to the detriment of the Debtors and their estates and creditors.”

The Court scheduled an October 6, 2016 hearing on the motion, with objections due by September 22, 2016. Read more bankruptcy news.

The post Constellation Enterprises Settlement Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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