Glacial Energy, lacking case funding, asks for conversion to Chapter 7

By Kali Hays

New York, Feb. 27 – Glacial Energy Holdings, Inc. asked the U.S. Bankruptcy Court for the District of Delaware to convert its Chapter 11 bankruptcy case to Chapter 7 on Feb. 27, according to a motion.

The company said it has “sufficient funding” to pay its trustee fees through the first quarter of 2015, but an approved wind-down budget only provided enough funding for the Chapter 11 case through December.

As such, Glacial said it does not expect “to have sufficient funding to pay the totality of the professional fees and expenses incurred beyond December 2014 and otherwise lacks the funding to continue these Chapter 11 cases,” according to the motion.

As previously reported, the company completed a sale of substantially all assets in June 2014 to Platinum Partners Value Arbitrage Fund LP with a cash consideration of $32.79 million.

Glacial also sold the assets of its subsidiary, Ziphany, LLC, in December to JKMV ACQ LLC for $260,000.

A hearing to consider conversion is set for March 12.

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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