On or about February 24, 2014, following a hearing on the
Court’s prior Order to Show Cause, the Court issued an Order directing the
Debtor to file a Notice on or before March 17, 2014, to indicate whether or not
it has reached an agreement with RBS that it in good faith believes will allow
it to submit a confirmable plan of reorganization. If an agreement is not reached by March 17,
the Order directs the United States Trustee to appoint a Chapter 11 Trustee on
March 18, 2014. As a result, the Debtor
has three (3) weeks from the date of the Order to reach an agreement with RBS
before a Chapter 11 Trustee is appointed to assume control of the Bankruptcy
Estate.
During the hearing on the Order to Show Cause, representatives of the Debtor indicated that certain non-debtor assets may be sold and a portion of proceeds set aside for plan payments, but there was no promise that creditors will be paid 100%. Representatives of RBS indicated that they view this as the last chance to reach an agreement with the Debtor.
