Constellation Enterprises filed with the U.S. Bankruptcy Court a motion for an order authorizing dismissal of the Debtors’ cases.
The motion explains, “Having conducted a lengthy and thorough marketing process, the Debtors have successfully closed the transaction for the assets of Debtor Columbus Castings Company (‘CSC’), and are in the process of closing the going-concern sale of the remaining Debtors (the ‘CE Star Transaction’). Through the closing of the sale, the Debtors’ wind-down expenses will be funded. To effectuate the closing on the CE Star Transaction, the Debtors have filed contemporaneously herewith a Rule 9019 motion seeking to approve a settlement of certain environmental and regulatory matters related to Debtor Jorgensen Forge Company (the ‘JFC Settlement’).”
The motion continues, “Although the Debtors’ sale process has been a success, there is simply no prospect of being able to confirm a chapter 11 plan in these cases. Accordingly, by this Motion, the Debtors seek Court approval of the Dismissal Order authorizing the dismissal of these chapter 11 cases under certification of counsel following the consummation of the CE Star Transaction, and certain other conditions…The Debtors believe dismissal is warranted because it will provide an orderly end to these chapter 11 cases and is in the best interest of the Debtors’ creditors and estates. Following consummation of the CE Star Transaction, there will be no business left to reorganize and nothing of value left in the Debtors’ estates that would warrant the continuation of these cases….The Debtors believe that the alternative to dismissal – conversion of these chapter 11 cases to chapter 7 of the Bankruptcy Code – would lead to a negative outcome for these cases and is unwarranted because conversion would, among other things, create additional administrative expenses without any benefit to creditors.” The Court scheduled a November 22, 2016 hearing on the motion.
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