The U.S. Bankruptcy Court issued an order approving Core Resource Management’s official unsecured creditors’ committee joint motion to dismiss Nitro Petroleum’s Chapter 11 proceeding (case number 16-08288).
As previously reported, “The Motion to Dismiss is based on the fact that Nitro does not exist as a separate entity and therefore cannot be a debtor in bankruptcy….The Committee has conducted an investigation into the status of the corporate structure for Core and Nitro. From its investigation, it appears that the merger contemplated by the Merger Document was not effectuated. Rather, as per the corporate documents signed and filed with the Nevada Secretary of State on February 4, 2015, Nitro was fully merged into Core.”
In addition, “As a result of the merger, Nitro is not a separate legal entity. All of Nitro’s assets are property of the Core bankruptcy estate and all of the creditors of Nitro are actually creditors of Core….Certainly, cause has been shown in this instance where the Nitro ‘debtor’ is not a legal entity. Corporately, it no longer exists. It cannot be a debtor under the Bankruptcy Code.”
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