TerraVia Holdings filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a plan and solicit acceptances thereof through and including February 28, 2018 and April 30, 2018, respectively.
The motion explains, “The Debtors’ request for an extension of the Exclusive Periods comes less than six weeks before the hearing to consider confirmation of the Combined Disclosure Statement and Plan. Following a successful sale process, the Debtors proposed and the Court approved the Combined Disclosure Statement and Plan on an interim basis for solicitation purposes only. The Debtors are in the midst of solicitation of the Combined Disclosure Statement and Plan. Moreover, the proposal and solicitation of a competing plan would be disastrous during this critical period immediately preceding the confirmation hearing. Accordingly, the Debtors submit that their progress to date, coupled with the serious risk of eroding that progress mere weeks before the scheduled confirmation hearing, weigh in favor of extending the Exclusive Periods.”
In addition, “Termination of the Exclusive Periods would adversely impact the Debtors’ efforts to preserve and maximize the value of their estates and the progress of the Chapter 11 Cases. Such termination may dis-incentivize creditors from negotiating with the Debtors, and undermine the Debtors’ efforts to successfully solicit acceptances of the Combined Disclosure Statement and Plan. Moreover, the solicitation of any competing plan could greatly complicate and increase the cost of administering the Chapter 11 Cases.”
The Court scheduled a January 8, 2018 hearing to consider the extension motion, with objections due by December 13, 2017.
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