According to the U.S. Bankruptcy Court docket, the Court approved Liquid Holdings Group’s motion to convert its Chapter 11 reorganization cases to liquidation under Chapter 7.
As previously reported, “The Debtors lack sufficient liquidity to make pursuit of a sale or liquidating plan an appropriate exercise. Moreover, despite extensive prepetition marketing, no party has committed to serve as a stalking horse bidder in a sale process. Should the Chapter 11 Cases not convert the Debtors believe that they will be unable to continue to pay administrative expenses as they come due. Engaging in a chapter 11 liquidating plan process will unnecessarily deplete the Debtors’ remaining assets and would be unlikely to provide a meaningful return to unsecured creditors. Rather, the interests of the Debtors’ estates will best be served by conversion of these Chapter 11 Cases to cases under chapter 7 of the Bankruptcy Code. By converting the cases, the remaining assets of the estates can be efficiently and effectively liquidated by a chapter 7 trustee and distributed to stakeholders.”
Court-filed documents continue, “While the Debtors believe these Actions fall under Bankruptcy Code section 363(c)(1) in that they are being done in the ordinary course of business, in an abundance of caution and to the extent necessary, the Debtors seek confirming authority under Bankruptcy Code section 363 to implement these Actions.” This management solutions’ provider filed for Chapter 11 protection on January 27, 2016 listing $28 million in pre-petition assets.
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