Hobbico lacks funds for plan confirmation, asks court to convert case

By Caroline Salls

Pittsburgh, June 20 – Hobbico, Inc. is asking the U.S. Bankruptcy Court for the District of Delaware to convert its Chapter 11 case to Chapter 7, according to a motion filed Wednesday.

The company said it has now sold all of its operational assets of any meaningful value.

“While the debtors have taken several steps since closing the sale to wind up their estates, at this point the debtors do not believe that their estates will continue to benefit by remaining in Chapter 11,” the motion said.

In addition, Hobbico said it lacks the funds to confirm a Chapter 11 plan of reorganization.

“With the cessation of operations and no significant tangible assets left to administer, a successful rehabilitation under the auspices of Chapter 11 of the Bankruptcy Code is not possible,” the motion said.

A hearing is scheduled for July 11.

Hobbico is a Champaign, Ill.-based designer, manufacturer and distributor of radio control and general hobby products. The company filed for bankruptcy on Jan. 10 under Chapter 11 case number 18-10055.

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