Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Boomerang Systems Plan Filed

Boomerang Systems and its official committee of unsecured creditors filed with the U.S. Bankruptcy Court a Joint Combined Disclosure Statement and Plan of Liquidation. The combined document notes, "[T]he Debtors believe that liquidation under chapter 7 would result in lower aggregate distributions being made to Holders of Allowed Claims than those provided in the Plan. The Committee and the Debtors believe that the maximum value for the Debtors' tangible and intangible assets can only be realized through an orderly liquidation in chapter 11, which features the support, knowledge, and participation of the Debtors' remaining officers, directors and management….Furthermore, liquidation in chapter 7 would not permit the unsecured creditors of these Estates to benefit from the PrePetition Lender/Committee Settlement, which provides unsecured creditors with significant sharing percentages in the proceeds derived from the liquidation and administration of the Debtors' assets. Absent confirmation of this Plan, the terms and conditions of this carve out may not be available to unsecured creditors, who may be forced to either litigate against the LSA Lenders, or receive distribution only after the LSA Lender Claims are satisfied in full--an unlikely outcome in a forced liquidation in chapter 7." The Court scheduled a combined hearing on March 9, 2016, with objections due by March 2, 2016.

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