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Metal Partners Rebar asks to convert bankruptcy case to Chapter 7
By Sarah Lizee
Olympia, Wash., March 2 – Metal Partners Rebar, LLC asked the U.S. Bankruptcy Court for the District of Nevada to convert its Chapter 11 bankruptcy case to Chapter 7, according to a motion filed Tuesday.
In October 2020, the company received court approval to sell its assets to stalking horse JRC OpCo, LLC, an entity controlled by majority owner and manager Jose D. Carrero.
Metal Partners Rebar said that at the time of the sale hearing, it understood that the official committee of unsecured creditors planned to file a plan of liquidation.
The company said that although it is aware that the committee has engaged in significant analysis, negotiation and drafting in this regard, too much time has passed, indicating that no plan is likely possible.
The debtor also said that Traxys North America LLC holds a blocking position in the general unsecured creditor class and can “veto” any potential plan it does not agree with.
Additional fees and costs continue to accrue, including with respect to a separate adversary case filed by Traxys, the company added.
The amount of professional compensation requested by the estates’ professionals, collectively, is well in excess of the debtors’ cash available to pay them by hundreds of thousands of dollars. As such, the estates are administratively insolvent.
Metal Partners Rebar said if its cases are converted, its professionals will continue to work with a Chapter 7 trustee to ensure there is a smooth transition and handover of the cases.
A hearing is scheduled for March 30.
Metal Partners is a fabricator of reinforcing bars and other steel products. The company filed Chapter 11 bankruptcy on June 16, 2020 under case number 20-12878.
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