Escalera Resources’ official committee of unsecured filed with the U.S. Bankruptcy Court a motion seeking the appointment of a Chapter 11 trustee.
The motion explains, “In this case, the appointment of a trustee is warranted and in the best interest of creditors because there has been no progress made towards any resolution of the case. By a simple review of the docket, one can ascertain that no progress has been made. The Debtor has not filed a Plan, a motion to sell its assets or establish a sale process, an application to employ an investment banker to assist in a sale process or any other pleading which would give any indication that the Debtor has any plan to re-organize or for any other disposition of the case.”
The motion continues, “The Debtor has lost millions of dollars during its bankruptcy case and continues to lose money each month. The Debtor’s delay in putting together a plan or making a decision on the direction of its case is harmful and is detrimental to creditors. When this case was filed, the Debtor had a term sheet for a plan and told the court and parties in interest that it planned to exit in bankruptcy within ninety (90) days. After the initial plan lost the support of the Debtor’s lender, the Debtor has failed to make any progress and has not been able to move forward in any direction at all. If a trustee were to be appointed, a trustee could evaluate the options for the estate and make a decision as to the best course of action going forward so that some progress could be made. The stagnation and lack of progress is harmful to creditors and benefits no one.”
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