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Zenith Bank Plc (“Zenith”) filed with the U.S. Bankruptcy Court a motion for dismissal or abstention under 11 U.S.C. Section 1112(b) and 305 (a)(1). In support of the dismissal, Zenith states, “The Debtors’ reorganization efforts hinged on success at a hearing before the Nigeria Federal High Court on July 6, 2018. The Nigeria Federal High Court adjourned this hearing, however, until October 3, 2018. Before October 2018, the Debtors will run out of cash and will lack funds to administer their Chapter 11 Cases. If they have not done so already, the Debtors will deplete their DIP Loan by the second week of July, and the Debtors offer no evidence that they will be able to obtain additional post-petition financing. Indeed, even if they had an interested lender, Zenith would object to any motion by Debtors seeking to subordinate the Zenith Security Interest to a lender. No rational lender [would] lend in fifth priority lien position behind Zenith, PIC, Bumi, and the DIP Lender….This Court should dismiss the Chapter 11 Cases. There is a substantial and continuing loss to the Debtors’ estates, and the Debtors do not have a reasonable likelihood of rehabilitation. Dismissal is in the best interests of the Debtors’ estates and the creditors involved. By dismissing the Chapter 11 Cases, parties will have the opportunity to enforce remedies in Nigeria if they choose. Dismissal, rather than conversion, is the most appropriate relief given the unique facts and circumstances of the Chapter 11 Cases. Appointment of a chapter 7 trustee is not in the best interest of the estates or the creditors. A trustee will have to expend significant time becoming familiar with the complexities of these cases, the Nigeria litigation, and the parties involved. The Debtors have little cash to offer a chapter 7 trustee to administer the estates and liquidate assets halfway around the world that are unlikely to satisfy any creditors. It is in the best interests of all the significant parties involved to dismiss these Chapter 11 Cases.”
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