Core Resource Management’s official unsecured creditors’ committee filed with the U.S. Bankruptcy Court a joint motion to dismiss Nitro Petroleum’s Chapter 11 proceeding.
The motion explains, “The Motion to Dismiss is based on the fact that Nitro does not exist as a separate entity and therefore cannot be a debtor in bankruptcy….The Committee has conducted an investigation into the status of the corporate structure for Core and Nitro. From its investigation, it appears that the merger contemplated by the Merger Document was not effectuated. Rather, as per the corporate documents signed and filed with the Nevada Secretary of State on February 4, 2015, Nitro was fully merged into Core. As a result of the merger, Nitro is not a separate legal entity. All of Nitro’s assets are property of the Core bankruptcy estate and all of the creditors of Nitro are actually creditors of Core.”
The motion continues, “Certainly, cause has been shown in this instance where the Nitro ‘debtor’ is not a legal entity. Corporately, it no longer exists. It cannot be a debtor under the Bankruptcy Code.”
The committee subsequently filed a motion to appoint a Chapter 11 trustee to the Core Resource Management proceeding. This motion explains, “In this case, the record demonstrates that cause exists to appoint a trustee. As outlined by Committee counsel on the record at a hearing held September 15, 2016 and as apparent from the Schedules, in short, Core has failed to timely, fully or correctly identify its assets and liabilities, and has demonstrated numerous shortcomings in its ability to fully manage its affairs.” The Court scheduled an October 13, 2016 hearing to consider both motions.
Read more bankruptcy news.
The post Core Resource Management Dismissal, Trustee Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.