IMRIS filed with the U.S. Bankruptcy Court a motion for an order (a) authorizing and approving the claims resolution process, (b) approving payments to administrative and priority claimholders and (c) dismissing the Chapter 11 cases.
The motion explains, “On August 14, 2015, the Debtors completed a sale of substantially all of their assets to the Purchasers. Since that time, the Debtors and their professionals have reviewed and reconciled all outstanding administrative and priority claims and estimated potential wind-down costs associated with both a chapter 11 plan of liquidation and a structured dismissal, and analyzed all strategic options regarding a responsible and cost-effective exit from chapter 11. Given the magnitude of the Debtors’ administrative and priority claims, coupled with the Debtors’ inability to effectuate additional borrowings other than amounts previously funded under the Budget and lack of remaining assets to monetize, the Debtors respectfully seek a structured dismissal of these Chapter 11 Cases.”
The motion continues, “The Debtors believe that such a result will allow them to cease incurring additional, burdensome administrative expenses and instead maximize value for creditors. Moreover, in order to effectuate the structured dismissal, counsel to the Debtors and the Committee have agreed to write-down amounts in order to fund a recovery for the Debtors’ priority claimants who, in chapter 7 liquidation, would likely receive no recovery.”
The Court scheduled a May 3, 2016 hearing date to consider the dismissal motion, with objections due by April 13, 2016. Read more IMRIS Chapter 11 news.