According to the U.S. Bankruptcy Court docket, Endeavour International filed a motion to dismiss the Chapter 11 case, pursuant to Sections 105(a), 305(a) and 1112(b) of the Bankruptcy Code and Bankruptcy Rule 1017.
The motion explains, “The Debtors believe dismissal of these cases is warranted because it will provide an orderly end to these chapter 11 cases and is in the best interest of the Debtors’ creditors and estates. The Debtors cannot confirm a chapter 11 plan because they do not have sufficient funds to pay all administrative expense claims in full under a chapter 11 plan. Significantly, as part of their U.S. asset sale, the Debtors will sell or otherwise dispose of all of their U.S. oil and gas assets, and as part of the Credit Bid Transaction, the Debtors will sell the equity in their U.K. subsidiaries which own all of the company’s U.K. oil and gas assets. As a result, following the consummation of the sales, there will be will be no business left to reorganize and nothing of value left in the Debtors’ estates that would warrant the continuation of these cases….Through dismissal, the Debtors seek to minimize the accrual of additional administrative expenses. The Debtors believe that the alternative to dismissal—conversion of these Chapter 11 cases to Chapter 7 of the Bankruptcy Code—is unwarranted because such conversion would create additional administrative expenses, unnecessarily reducing the recoveries of creditors.”
The Court scheduled an August 24, 2015 hearing to consider the motion, with objections due by August 17, 2015.
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