Elemental Processing lender agent’s case dismissal motion approved

By Caroline Salls

Pittsburgh, May 19 – Elemental Processing, LLC’s Chapter 11 case has been dismissed, according to an order filed with the U.S. Bankruptcy Court for the Eastern District of Kentucky.

As previously reported, earlier this month lender agent Amerra Capital Management, LLC asked the court to dismiss the case. Amerra said the court denied the company’s motion to use cash collateral on April 30, ruling that Tony Struyk had mismanaged the company by intentionally diverting funds into a bank account that he opened to hide money from Amerra and paying himself and Jeff Lake $40,000 after months of payment defaults.

In addition, Amerra said the court found that Elemental Processing could not provide adequate protection to Amerra for the use of its cash collateral, that the company’s proposed business plan was “speculative at best,” and that Elemental did not have access to the funding it would need to reorganize.

The lender agent said those conclusions “amply support a finding that cause exists to dismiss this Chapter 11 case.”

As a result, Amerra said the case should be dismissed so Elemental can be liquidated under the supervision and jurisdiction of the Kentucky State Court.

Lexington, Ky.-based Elemental Processing provides biomass, modern technology, land management practices and genetics for cannabinoids. The company filed bankruptcy on April 20 under Chapter 11 case number 20-50640.

© 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.