Euclid Investments and Euclid Claims Recovery filed with the U.S. Bankruptcy Court a motion for entry of order terminating Premier Exhibitions’ exclusive period to file a Chapter 11 plan and solicit acceptances thereof.
The motion explains, “It is axiomatic that the centerpiece of a chapter 11 case is the development, proposal and ultimate confirmation of a plan of reorganization, and the requirement for good faith negotiation among the debtor and its stakeholders is a paramount condition in that undertaking…With these cases now almost six months old, the debtors here have not only failed to engage constructively or in good faith with the official committees, but based on what can be gleaned from the public case record, they have failed to engage in any manner whatsoever in plan negotiations with the committees. In fact, these debtors show such an astounding disregard for the fundamental chapter 11 process that they appear hostile to the very existence of the crucial statutory committees.”
The motion continues, “This imperial attitude of debtor management is nowhere more clear than in its unilateral approach to the plan process. From the very inception of these cases, the debtors’ sole publicly stated concept of a ‘plan’ has been singular and unbending: a) prosecute and win the French litigation; b) assuming a litigation win, sell only that small number of Titanic artifacts necessary to pay creditors; and c) emerge from chapter 11 and go back to business as usual. The debtors apparently would have all parties in interest sit on their hands and do nothing to formulate any alternative plan while they fumble along in pursuit of the French litigation.”
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