Liquid Holdings Group Inc (LIQDQ)

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On February 8, 2016, the Debtors filed a motion with the Bankruptcy Court seeking to convert their Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code and initiate an orderly liquidation of the Company’s assets in accordance with the Bankruptcy Code.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11169640

Item 1.03 Bankruptcy or Receivership.

Liquid Holdings Group, Inc. (the “Company”) previously reported that, on January 27, 2016, the Company and its subsidiary, Liquid Prime Holdings, LLC (collectively, the “Debtors”), filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).

On February 8, 2016, the Debtors filed a motion with the Bankruptcy Court seeking to convert their Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code and initiate an orderly liquidation of the Company’s assets in accordance with the Bankruptcy Code. A hearing on the motion is scheduled for February 29, 2016. Assuming the motion is granted, a Chapter 7 trustee will be appointed by the Bankruptcy Court and will assume control of the Debtors. The Company’s board of directors, after spending considerable time and effort attempting to pursue strategic alternatives, concluded that the Chapter 7 conversion was the only viable alternative available to the Company.

Item 2.05 Costs Associated with Exit or Disposal Activities.

On February 5, 2016, the Company reduced its workforce by 17 employees, or 68% of the Company’s total workforce. No severance payments were offered or made. The Company also notified the contractors comprising the bulk of the Company’s development team that their services were no longer needed (and a motion to reject the pertinent agreements as of February 5, 2016 has been filed in the Bankruptcy Court). At the time of filing this Current Report on Form 8-K, the Company is unable to determine estimates of amounts expected to be incurred in connection with these restructuring actions.