ESP Resources official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion for conversion of the Companys Chapter 11 reorganization to a liquidation under Chapter 7.
The motion explains, The Debtors in this case have no prospect of rehabilitation. At best, a placeholder liquidating plan providing releases to all insiders has been filed to preserve exclusivity. This case is simply the use of the bankruptcy courts as a convenient foreclosure forum for the benefit of the secured creditors and the professionals. There is no provision for any recovery whatsoever for unsecured creditors in this case. Unsecured creditors will receive nothing …
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