I have/had to read legislation as part of my job and can try to breakdown what is being said.
Essentially, DESTQ started their bankruptcy proceedings as a way to identify and liquidate the various assets the company managed. Now they are saying that they have liquidated EVERYTHING that can be liquidated (Even bonds with Customs/Border orgs. for importing.) Due to this they cannot put together a PoR as there is nothing to reorganize (<$5M afaik.) compared to the claims.
From my understanding they would like to dismiss the case instead of moving to chapter 7 proceedings mainly due to the costs associated with chap. 7 being too high:
"After considering all potential alternatives, the Debtors have determined that a
dismissal of these chapter 11 cases is the most expeditious and cost-effective process to wind down ... Secured Claims and
Administrative Claims. A dismissal will result in greater recoveries for such holders by ensuring
a faster and less costly completion of these chapter 11 cases as compared to a conversion to
chapter 7. The fees and commissions incurred by a chapter 7 trustee and its professionals alone
justify dismissal of these cases. Moreover, conversion to chapter 7 would further delay distributions to holders of allowed Secured Claims and Administrative Claims, as a chapter 7
trustee and its professionals would need to spend time familiarizing themselves with these cases.
(emphasis mine)
Also, there was this little nugget:
"Because the Debtors have sold substantially all of their assets and ceased
operations, the Debtors intend for their corporate entities to be dissolved as soon as reasonably
practicable upon entry of the Dismissal Order."
