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>>>>The Delaware case dismissed entirely!!!<<<<
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Tentative ruling issued by Judge Laura Taylor
October 4, 2017
(Snippet)
This case will not result in Discharge, as debtor is not entitled to one, and will not result in a distribution to creditor , as there are none.
The court inclined either to grant this motion or to implement procedures to allow the trustee to quickly liquidate the only saleable assets of the estate and to close this case with a minimum of expense, including avoidance of the task of corporate dissolution.
The Directors seek to protect their own pocketbooks , they pay no heed to the economic burden they place on the Trustee.
Minute Order...
Debtor e.DIGITAL Corporation , A Delaware Corporation
Thursday , October 5 , 2017. 10 AM
bankruptcy Judge Laura S. Taylor
Reporter Jennifer Gibson
Matter ; Motion to Dismiss Bankruptcy case filed on behalf of Christopher Barclay
Appearances : Kerry Moynihan , attorney for e.DIGITAL corporation , a Delaware Corp
Christopher Barclay , Chapter 7 ,Trustee
Disposition : Motion DISMISSED pursuant to the courts tentative ruling . Order to be submitted by Mr Barclay
This is what we were waiting for:
Though the facts in the case at hand are somewhat different , the bankruptcy result is the same : this case WILL NOT result in Discharge, as Debtor is not entitled to one , and WILL NOT result in a distribution to creditors, as there are none.
The court understands that Debtors directors wants the case in chapter 7 , but the directors qua directors are neither creditors nor shareholders whose interest in the court must consider when considering dismissal under 704. And if the equities are considered , such factors appear to support dismissal. The directors seek to protect their own pocketbooks, they pay no heed to the economic burden they place on the Trustee.
Thus , the court is inclined to DISMISS as there appears to be "no legitimate bankruptcy purpose to be served". As a possible alternative , the PARTIES should be prepared to discuss procedures for streamlining this case and hastening completion as quickly and inexpensively as possible.
