Glacial Energy U.S. Trustee opposes extension, cites reporting delays

By Caroline Salls

Pittsburgh, Oct. 15 – The U.S. Trustee for Glacial Energy Holdings, Inc.’s Chapter 11 case objected to the company’s proposed extension of its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Region 3 U.S. Trustee Roberta A. DeAngelis said “exclusivity should be permitted to expire in this case due to the debtors’ failure to file monthly operating reports.”

Specifically, DeAngelis said that Glacial Energy’s monthly operating reports are currently due for the months of June, July and August.

“As a result, the U.S. Trustee and parties in interest are not able to monitor the debtors’ cash flow, raising questions as to whether the debtors have the ability to pay administrative claims and propose a confirmable Chapter 11 plan,” the objection said.

“The debtors’ failure to file the monthly operating reports raises questions as to whether there has been good faith progress towards a reorganization. While the debtors state that they continue to make timely payments on their undisputed postpetition obligations, it is impossible to verify this allegation without the filing of the required monthly operating reports.”

A hearing is scheduled for Nov. 7.

Glacial Energy, a Sandwich, Mass.-based electricity and natural gas company, filed for bankruptcy on April 10, 2014. The Chapter 11 case number is 14-10833.

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