Manistique Papers and committee ask court to dismiss Chapter 11 case

By Caroline Salls

Pittsburgh, June 23 – Manistique Papers Liquidation Co., Inc. and its official committee of unsecured creditors asked the U.S. Bankruptcy Court for the District of Delaware to dismiss the company’s Chapter 11 case, according to a June 22 court filing.

Manistique and the committee said any outstanding U.S. trustee fees will be paid.

To the extent there are minimal additional funds available and it would be impracticable to make a further distribution to creditors, the committee is seeking approval to donate those funds to the Anthony J. Schnelling Endowment of the American Bankruptcy Institute.

According to the motion, Manistique currently has $619,441 available for distribution and proposes to pay these funds among the remaining approved claims for professional fees and two allowed administrative claims.

“Because the assets of the debtor’s estate are limited and priority and general unsecured claims will not receive any distribution, the committee does not propose to continue to undertake an extensive claims reconciliation process,” the motion said.

As an alternative to case dismissal, the company and committee said the court could convert the case to Chapter 7 bankruptcy.

A hearing is scheduled for Aug. 18.

Manistique Papers, a Manistique, Mich., recycled-fiber specialty paper producer, filed for bankruptcy on Aug. 12, 2011. Its Chapter 11 case number is 11-12562.

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