Core Resource Management’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court a Chapter 11 Plan and related Disclosure Statement.
According to the Disclosure Statement, “The Committee Plan proposes to transfer the operating business of the Debtor to Core Resource, LLC, an Arizona limited liability company (‘Core LLC’) whose sole member is the Core Resource Trust (the ‘Core Trust’). The Trustee of the Core Trust will operate the Debtor’s business for the sole purpose of maximizing the value of the business for creditors. Core LLC will have start-up capital of $250,000 available from a revolving line of credit which will enable it to pay Effective Date expenses and to operate the new company.”
The Disclosure Statement continues, “All profits of the Core LLC will flow to the Trust and will be distributed to Creditors and Interest Holders in accordance with the priorities of payment established by the Bankruptcy Code. The Plan describes the structure of the LLC and the Trust and sets forth the means for distributions to Creditors. The Debtor will be dissolved….Buried within Debtor’s discussion of the status of each well, Debtor contemplates the cost of repairs, however these estimates are unsupported by any information and sometimes range from $10,000 to $25,000 and at other times no estimate is even provided….Debtor estimates unsecured trade debt at approximately $600,000 and unsecured note and debenture holders at about $2 Million.”
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