Violin Memory filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing abandonment of equity interests in foreign subsidiaries.
The motion explains, “With no operations, employees or net assets, the Foreign Subsidiaries are burdensome and have no value to the Debtor or its estate. Notably, the Debtor’s postpetition sales process did not yield any bids for or other interest in the Foreign Subsidiaries or the Debtor’s equity interests in such entities; indeed, such assets were specifically designated as ‘Excluded Assets’ pursuant to the asset purchase agreement for the back-up bid, as circulated to qualified bidders at the auction. Although it is currently the intention of the Reorganized Debtor, to fund reasonable and necessary costs of winding down the Foreign Subsidiaries (in addition to amounts prefunded by the Debtor prior to the Petition Date for such anticipated costs), the Debtor seeks to abandon its equity interests in the Foreign Subsidiaries to best position the Reorganized Debtor for a fresh start upon emergence from bankruptcy and thereby facilitate consummation of the Plan.”
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