The U.S. Bankruptcy Court issued an order, with revisions, approving Novation Companies’ second motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including June 30, 2017.
The Debtors had requested a July 17, 2017 extension. As previously reported, “First and foremost, the Debtors operations are performing well and progress is being made to stabilize cash flows. During the post-petition period, the Debtors have generated positive cash flows. The Debtors’ filed monthly operating reports evidence the same. The Debtors have also timely paid all U.S. trustee fees and administrative claims are current. Moreover, the Debtors have conducted extensive due diligence in connection with multiple possible transactions which may form the basis of a chapter 11 plan, which ultimately led to the HCS Transaction set forth in the Plan. The Debtors’ efforts ultimately led to the transaction set forth in the Plan. With the disclosure statement hearing scheduled for this April, 2017, there is more than sufficient basis to support an extension of the Exclusive Solicitation Period….In light of the short duration and complexity of these cases, the challenges faced by the Debtors, and the progress that the Debtors have made to date, including with respect to filing of the Plan, the Debtors submit that an extension of the Exclusive Solicitation Period is warranted.”
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