Kirk lenders request conversion to Chapter 7, with shorter notice

By Alice Popovici

New York, Sept. 30 - Kirk Corp.'s agent for prepetition lenders, JP Morgan Chase Bank, N.A., asked the U.S. Bankruptcy Court of the Northern District of Illinois to convert the company's bankruptcy cases to Chapter 7 and shorten the 20-day conversion notice period to seven days, according to a Tuesday filing.

Arguing for the change, JP Morgan said the company failed to confirm its plan or reorganization and has no cash to continue running the business.

"The [company's] dire circumstances prevent any outcome other than liquidation," the motion states.

JP Morgan asked for a shortened notice period because the company is now unable to continue operations, "given the expiration of the cash collateral order and their lack of unencumbered assets."

Kirk, an employee-owned homebuilder based in Streamwood, Ill., filed for bankruptcy on May 12. Its Chapter 11 case number is 0917236.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.