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Replies to post #70806 on Innerscope Hearing Technologies Inc (INND)
03/03/25 8:59 AM
03/03/25 11:36 AM
I. INTRODUCTION
Poppy Bank joins the United States Trustee (“UST”) in its request for dismissal of Debtors’ Chapter 11 Case based on Debtor’s failure to obtain adequate insurance. Additional causes also warrant dismissal of Debtor’s case, including unauthorized use of cash collatera combined with gross mismanagement, as well as diminution of the value of the estate. Debtor is using cash collateral but has not obtained court permission to do so and has no plan to obtain such permission until March 27, 2025 at the earliest. Debtor’s recent unauthorized expenditures were for items that do not appear necessary for continued business operations, with at least one payment made directly to an insider. Debtor has demonstrated a pattern of mismanaging its affairs in a way that unfairly benefits its managing partners at the expense of Debtor’s creditors as well as Debtor’s solvency. Additionally, the accumulation of penalties and interest on delinquent taxes and mortgage installments are eroding the estate. For these reasons Poppy respectfully joins the UST in its request to dismiss Debtor’s case.
InnerScope is not an independent third-party entity. It is also controlled by the Moores. By allowing InnerScope to continue in possession without paying rent, Debtor effectively subsidized this other Moore-controlled company. InnerScope now owes Debtor $540,000 in back-rent. If Debtor had addressed InnerScope’s failure to pay rent immediately, Debtor may have remained solvent. Debtor’s mismanagement, through the Moores, demonstrates its inability or unwillingness to rehabilitate Debtor’s business.
AI
