Premier Exhibitions’ official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ motion to extend exclusivity and a response to the equity committee’s motion to terminate exclusivity.
The creditors’ committee asserts, “The Debtors’ argument that their unsecured creditors would not be prejudiced by the requested exclusivity extension through April 10 is disingenuous, at best: …To date, the Debtors have done little to pursue alternative strategies, such as the sale of the entire Titanic collection, subject to the Revised Covenants and Conditions…The cash collateral budget prepared by the Debtors’ financial advisor and shared with the Creditors’ Committee earlier this month indicates the Debtors are operationally insolvent and are expected to run out of cash in a matter of months absent a DIP loan. The Debtors have acknowledged that their ability to close on a DIP loan hinges on their obtaining clean title to the French artifacts, which in turn requires that they prevail in the pending adversary proceeding against France, which has yet to occur.”
The objection continues, “The Debtors’ statement that they have received no proposals from any party regarding an alternative strategy is patently false….The Debtors attempt to portray their limited cash resources as a reason to extend exclusivity, arguing that absent such relief the Debtors will have to pay administrative expenses that they can ill afford associated with another party’s potentially proposing a plan that contemplates an alternative strategy. The Debtors’ deteriorating cash position, however, weighs against extending exclusivity.”
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