The U.S. Bankruptcy Court issued an order converting Core Resource Management’s Chapter 11 reorganization to a liquidation under Chapter 7.
The U.S. Trustee assigned to the case originally sought the conversion order in July 2016 and further supplemented the motion in February 2017. The Trustee argued, “Debtor has struggled and is now clearly overwhelmed by the difficulties with its operations to comply with basic administrative duties, which include providing requested disclosure and information on a timely basis for all interested parties, ensuring that its assets are adequately protected, and timely paying its quarterly fees.”
The Company also sought a conversion order in March 2017 and told the Court, “Conversion will eliminate certain ongoing administrative expenses and will allow the trustee to focus on the task of liquidating the estate. Since there is no likelihood of a successful reorganization, and since the estate continues to lose money, conversion is appropriate.”
This oil and gas production company filed for Chapter 11 protection on June 13, 2016, listing $7 million in pre-petition assets.
Read more bankruptcy news.