Highway Technologies seeks conversion of Chapter 11 case to Chapter 7

By Jim Witters

Wilmington, Del., Sept. 20 - Highway Technologies Inc. asked the court to convert its case to Chapter 7 from Chapter 11, according to a Sept. 20 filing with the U.S. Bankruptcy Court for the District of Delaware.

The company says that a Chapter 11 plan is not feasible, given the estimate for claims that may be asserted.

"In addition, there is no agreement with the prepetition lenders to use their collateral past Oct. 18," according to the filing.

The key asset sales closed prior to Aug. 15.

Simultaneously, the official committee of unsecured creditors negotiated and settled disputes with the debtors' pre- and post-petition lenders and equity sponsors.

"Since that time, the debtors have been collecting outstanding accounts receivable and winding down the remaining business," the company says.

A hearing on the request for conversion is scheduled for 2 p.m. ET on Oct. 16.

Highway Technologies is a Houston-based highway safety services and equipment provider. Its Chapter 11 case number is 13-11326.

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