White Winston Select Assets Funds filed with the U.S. Bankruptcy Court a motion to terminate automatic stay and for adequate protection, to confer White Winston Select Asset Funds with derivative standing to pursue claims against the Debtors’ current and former officers and directors and their insurers or, alternatively, to dismiss or convert Multimedia Platforms’ bankruptcy cases.
The motion explains, “The Debtors have presented no evidence that a feasible reorganization is in prospect. The Debtors have significant claims against their officers and directors, but the Debtors not only have refused White Winston’s request to bring these claims, they have failed to take even rudimentary steps to preserve their rights to indemnification under their prepetition directors and officers’ liability insurance policies (‘D&O Policies’). In short, the totality of the circumstances surrounding the Debtors’ actions and omissions demonstrate that the Court should allow this Motion.”
In addition, “The Debtors lack any prospects for a successful reorganization within a reasonable time. These cases at bottom are solely a two party dispute in which the Debtors seek to frustrate White Winston’s collection efforts as a secured creditor. The Debtors’ acts and omissions since the filing of the Trustee Motion only reinforce White Winston’s concerns that a chapter 11 trustee should be appointed as soon as possible to rectify the harm the Debtors are causing to their estates and creditors. However, if the Court does not allow the Trustee Motion, then White Winston seeks entry of one or more orders granting the relief requested in this Motion to protect itself from further harm.”
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