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Uni-Pixel Bankruptcy Liquidation Sought

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Uni-Pixel filed with the U.S. Bankruptcy Court a motion to convert its Chapter 11 reorganization to a liquidation under Chapter 7.

The motion explains, “Substantially all of the Debtors’ assets have been sold and all remaining issues have been resolved (or set for hearing on or before the hearing on this Motion). There is no reason for the cases to remain in chapter 11, and it is in the best interests of all parties for the cases to be converted to chapter 7 so the remaining administration of the estates can be completed by a chapter 7 trustee….Further, no unusual circumstances are apparent that would demonstrate that conversion would not be in the best interests of the creditors and the estate. After the sale of the Debtors’ assets, nothing remains to be reorganized. Confirming a liquidating plan of reorganization to distribute the proceeds of the sale (and any other assets) would be far more expensive than allowing a chapter 7 trustee to do so.”

In addition, “The interests of the creditors and the estate would be best served by conversion to a liquidation case because there is no reason to continue to incur expenses associated with a chapter 11 case (e.g., preparation and filing of monthly operating reports, ongoing UST fees, etc.) when reorganization would be futile. Based on the foregoing, sufficient cause is established to necessitate conversion of the cases to chapter 7. The interests of the creditors and the estate would be best served by conversion to chapter 7 because unnecessary costs and expenses associated with a chapter 11 case would be avoided, and the Debtors’ assets have been sold.”

The Court scheduled a January 18, 2018 hearing on the conversion motion.

Read more Uni-Pixel bankruptcy news.