Four items.
14. The Debtor submits that ample cause exists for an extension of its Exclusive Periods. With a reduced staff and board of directors, the Debtor is still in the process of evaluating its liabilities and recovering assets as the Debtor continues to wind-down in chapter 11.
15. First, the jointly administered cases are complex. With respect to the Debtor’s liabilities, a substantial number of priority wage claims have been filed by former employees, but the Bar Date has not yet passed, and, therefore, the Debtor does not know the full extent of the claims. With respect to assets, the Debtor is in the process of attempting to recover funds transferred within the preference period. The Debtor is also is in the process of collecting receivables owed pursuant to promissory notes made by former employees.
16.Second, the Debtor is making a good faith effort to formulate a liquidating plan, but in order to do so the Debtor requires more time to evaluate its assets and liabilities. After the Bar Date passes, the Debtor will be in a better position to examine, object to and evaluate its liabilities.
17. Third, in light of the facts and circumstances, the Debtor has achieved a good deal of progress given that the Debtor’s case is now being jointly administered with that of JLSC, and that a Committee was only recently appointed. Specifically, First Clearing, LLC recently returned $97,000 to the Debtor, and the Debtor continues to actively pursue the remaining deposits being held by certain clearing firms. Moreover, the Debtor has engaged many former employees in dialogues by sending demand letters in connection with promissory note receivables, which the Debtor hopes will result in successful settlements.
18. Last, the Debtor requires an extension of the Exclusivity Period to give it time to obtain the information necessary for a disclosure statement, understand the value of the assets once they are collected, including any claims that the Debtor may have that can be brought for the benefit of the estates, and negotiate with the Committee. Further, as stated earlier, the Bar Date for filing claims against the jointly administered estates was recently set for December 8, 2010. Granting the requested extension will allow the Debtor to have a co-terminus Exclusivity Period with JLSC, which will allow them to quantify the claims against their estates and to proceed with a viable Plan. Moreover, having a single co-terminus deadline by which the Debtor and JLSC must file a plan will aid in organization and efficiency for the jointly administered estates.
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