Gissing North America committee wants to convert case to Chapter 7

By Sarah Lizee

Olympia, Wash., Nov. 17 – Gissing North America LLC’s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the Eastern District of Michigan to convert the debtor’s Chapter 11 case to Chapter 7, according to a motion filed Wednesday.

The committee said that since one asset sale has closed and another is expected to close in the next few days, the unsecured creditor body shouldn’t be required to further bear the additional costs projected by the debtors to allow them to continue to operate in Chapter 11, just for the benefit of customers.

The group said those costs will increase to the point of administrative insolvency, and further decrease any chance for recovery on unsecured claims.

“This court should expeditiously convert these Chapter 11 cases to Chapter 7, to allow a neutral Chapter 7 trustee to liquidate the debtors’ assets and pursue various causes of action in the hopes of salvaging some distribution to the unsecured creditors,” the committee said.

The Bingham Farms, Mich.-based company is a manufacturer of acoustic systems for the automotive industry. The company filed bankruptcy on Aug. 8 under Chapter 11 case number 22-46160.

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