The reason they have requested the extension is to protect the "Right of Exclusivity." In essence, it allows the Debtor to formulate and submit their plan without the involvement of other parties in interest. In that respect, they are trying to keep control of the company. The original exclusivity period is for 120 days from the petition date. When that time elapses, they no longer have the exclusive right to formulate the plan because other parties in interest can submit plans. Extensions of this date require prior approval of the court and other parties have to be allowed time to file objections.
This is why I mentioned a few weeks ago that we would know well in advance of the reorg due date if that date would be extended because it is not exactly the type of motion that Judges look favorably upon if brought at the 11th hour. If the court grants this extension into November it gives the company more breathing room and IMO, improves the overall chances of successful emergence from BK.
Chapter 11 Bankruptcy is a very powerful institution. This is a fact not lost the company or its counsel.So rest assured they are using the BK process to their advantage. Here is a quote from docket #707 "Since the Petition Date, the Debtors have worked diligently to stabilize their business operations and move forward with their reorganization, and, where necessary, using the bankruptcy process to their advantage."
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