posted September 21, 2007): What is the purpose behind the conversion of the case to Chapter 11?
As previously reported, over the past several months the Trustee and his professionals have been exploring the possibility of a business transaction that would serve as the basis to reorganize Southeast Banking Corporation (“SEBC”) through a Chapter 11 Plan. With the conversion to Chapter 11, the Trustee is now in a position to propose and seek confirmation of such a Plan. The aim of the Chapter 11 Plan will be to facilitate an infusion of new capital into SEBC, continue the existence of SEBC (or a portion of it) in the financial services industry (not including banking) in which it and its affiliates had participated, allow SEBC to utilize certain of its remaining assets (including certain tax attributes), and create a modest amount of additional value not only for bondholders and other creditors, but possibly also for the holders of SEBC Preferred and Common Stock. Toward that objective, the Chapter 7 Trustee sought and obtained approval of the Bankruptcy Court to retain an investmen
Related Questions
- posted November 2, 2007): As the case moves forward in Chapter 11, will the interests of shareholders be represented in the process of developing and presenting a plan of reorganization?
- posted September 21, 2007): Has the Bankruptcy Court ruled on the Trustee’s Motion to Convert the case to a case under Chapter 11, and what happens next?
- posted September 21, 2007): What is the purpose behind the conversion of the case to Chapter 11?
