PFO Global filed with the U.S. Bankruptcy Court an emergency motion to convert its Chapter 11 reorganization cases to liquidation under Chapter 7.
The motion explains, “The Debtors believe conversion and continuation of the Bankruptcy Cases under Chapter 7 are in their best interests and the best interests of their creditors. In light of the lack of any progress in the raising of the necessary funds for a reorganization (or debtor in possession financing) by the UCC, the Unsecured Creditors and the Debtors and the mounting expenses accrued by the Debtors, their creditors, and other parties in interest, the Debtors believe an orderly liquidation proceeding carried out according to the provisions of Chapter 7 of the Bankruptcy Code will minimize future expenses and provide for maximum distribution to creditors.”
In addition, “Concurrently herewith, in the effort to minimize further administrative expense, the Debtors have filed their Motion for Authority to Reject Non-Residential Lease Agreement relating to their leased premises. The Debtors invoke their right under Bankruptcy Code Section 1112(a) to convert the Bankruptcy Cases to cases under Chapter 7 of the Bankruptcy Code.”
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