PFO Global’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Company’s motion to convert from a Chapter 11 reorganization to a Chapter 7 liquidation.
The committee asserts, “The Committee objects to both the Motion to Convert and its expedited hearing. As the evidence would show, one of the best potential assets that could be monetized for creditors is from the sale of the Debtors’ public shell entity (through a reverse merger) which, upon information and belief could be worth several hundreds of thousands of dollars. The best way to realize this potential asset is for the Debtors to remain in chapter 11. Upon information and belief, conversion would severely, if not, completely jeopardize the ability to monetize this asset.”
In addition, “The Committee also objects to the expedited hearing on this Motion to Convert. As the Court knows, the Committee’s lead counsel is based in Florida, as is the Unsecured Creditors’ lead counsel. Neither counsel can attend in person on an emergency basis, nor can they coordinate the attendance of potential witnesses that they would adduce testimony and evidence from to prosecute this Objection depriving these important creditor constituencies of due process….Alternatively, the Committee would request a short continuance of one week to coordinate the attendance of its witnesses and lead counsel to Dallas in order for the Committee to fully litigate the Motion to Convert and demonstrate why it should be denied.”
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