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STW Resources Holding Conversion Denied

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The U.S. Bankruptcy Court issued an order denying Gary Trust’s motion to convert the STW Resources Chapter 11 reorganization reorganization case to a liquidation under Chapter 7.

The order states, “After having reviewed all evidence presented at the evidentiary hearing held on November 1, 2016, the Court finds that, for the reasons stated on the record during that hearing, the conversion of the Debtor’s case to Chapter 7 is not in the best interests of creditors and the estate at present and that therefore the relief sought in the Motion should be in all respects DENIED.”

Gary Trust previously argued, “Per the Debtor’s representative’s testimony at the 341 meeting, the ‘overall plan’ is to file Water as a bankrupt debtor and then jointly administer the cases, sell the water rights in Water and use that income to fund a plan. If a sale of assets is the ultimate goal of the Debtor and there are no ongoing operations than a Chapter 7 Trustee can accomplish the same results. Movant also believes there are claims against various persons and entities that may be best investigated and pursued by a Trustee….There is no remaining need for this estate to proceed under the provisions of Chapter 11 with its attendant administrative expenses.”

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The post STW Resources Holding Conversion Denied appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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