Hancock Fabrics’ official committee of unsecured creditors and the Pension Benefit Guaranty Corporation filed with the U.S. Bankruptcy Court separate objections to Hancock Fabrics’ motion to extend the exclusivity period.
The creditors’ committee asserts, “As the Court is well-aware, the Debtors sold all of their substantial assets at the outset of these cases, which asset sales concluded more than six months ago. Despite the continued urging of the Committee, it took the Debtors until December 2, 2016 to get a simple liquidating chapter 11 plan on file. To add insult to injury, since filing the Plan, the Debtors have failed to make any meaningful progress towards finalizing the Disclosure Statement and Plan and moving these cases on a path towards confirmation. The Debtors have not articulated any meaningful ’cause’ as to why additional delay is warranted.”
In addition, “These cases were never particularly complicated cases and, at this stage in the process, there is nothing that needs to be done that cannot be done simultaneously with the plan process or post confirmation. It is no secret that the pool of assets left to be distributed is not large, yet the administrative expenses continue to accumulate rapidly. Any more delay in moving these cases forward will significantly diminish the little value that is left for unsecured creditors. Instead of making motions to extend the solicitation period, the Debtors should simply set a disclosure statement hearing and move forward with confirmation.”
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