According to the U.S. Bankruptcy Court docket, the Court issued an order converting USA Synthetic Fuel’s Chapter 11 reorganization case to a liquidation under Chapter 7.
The order states, “The Debtors’ chapter 11 cases shall be converted to cases under chapter 7 of the Bankruptcy Code, effective as of October 6, 2015 (the Effective Date)….The Debtors shall within seven days of the Effective Date, turn over to the interim chapter 7 trustee, once one is appointed, all records and property of the estate under its possession or control….Debtors shall within fourteen days of the Effective Date, file schedules of unpaid debts incurred after the filing of the petition and before conversion of the case, including the name and address of each of the holder of a claim; and Debtors shall within thirty days from the Effective Date, file and transmit to the U.S. Trustee a final report and account as required by Bankruptcy Rule 1019 (5)(A).”
The Company sought this conversion order, noting, “Given that the Debtors (i) have sold all of their assets of any meaningful value, (ii) have no business operations, and (iii) do not have the resources necessary to propose and confirm a chapter 11 plan, the Debtors submit that conversion of these cases to cases under chapter 7 of the Bankruptcy Code is necessary and appropriate in addition to the reasons articulated under section 1112(a). Stated differently, there is no reasonable prospect that the Debtors can successfully rehabilitate.”
This development stage environmental energy company filed for Chapter 11 protection on March 16, 2015, listing $32 million in pre-petition assets.
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