It is basically a case of Cahn going to jail
for trading while
insolvent (as would a normal company
director) if he carries on in
Chapter 11, when the
company is insolvent.
What do you mean
"if" he carries on while the company is
insolvent. He is already guilty of
that. The company has
been insolvent for at least the last 3
months...
In the May 2012 monthly operating
report, filed
on August 1 2012, the Debtors’ estates report
$3,721,181.00 in unpaid
postpetition
debts and only $145,352.00 cash on hand. Additionally,
there
is no reasonable chance of “rehabilitation” in these
cases as the Debtors’
estates have already sold
substantially all of their assets and have no
continuing
business operations. Furthermore, the only reasonable
opportunity
for the Debtors’ estates to be in a position to
pay outstanding administrative
expenses and to potentially
make a distribution to general unsecured creditors
hinges
upon a successful outcome in the District Court Action.
A chapter 7
trustee would be in a better
position to eliminate administrative expenses
going
forward while awaiting an outcome with respect to the
District Court
Action.
How do they plan to "eliminate administrative
expenses"?
Get the government to pay their costs to pursue the
litigation
somehow? (Though Boise Schiller is obligated to
continue the litigation, SCO is
still required to pay
incidental court room fees.) [ Reply to This | Parent | # ]
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