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Published on 5/5/2021 in the Prospect News Distressed Debt Daily.

Carla’s Pasta must file operating reports, pay fees, trustee says

By Sarah Lizee

Olympia, Wash., May 5 – The U.S. trustee overseeing Carla's Pasta, Inc.’s Chapter 11 bankruptcy cases filed a motion Tuesday for an order compelling the debtors to file their monthly operating reports and pay quarterly fees immediately, according to a filing with the U.S. Bankruptcy Court for the District of Connecticut.

In the alternative, Region 2 U.S. trustee William K. Harrington said the cases should be dismissed or converted to Chapter 7.

Collectively, the debtors haven’t filed any of the six monthly operating reports that were required to be filed within the last four months, and as such, the U.S. trustee said he can’t determine the correct assessment of each debtors’ quarterly fees obligation.

Without the financial information contained in those reports, it is not possible for the bankruptcy court, the committee, the U.S. trustee, or creditors to examine the financial transactions of the debtors’ sojourn in Chapter 11 since the commencement of their respective cases, Harrington said.

“Cause exists for the entry of an order compelling each of the debtors to immediately file all delinquent MORs and immediately pay all appropriate delinquent quarterly fees,” the U.S. trustee said.

“In the alternative, cause also exists for the court to either dismiss the debtors’ respective Chapter 11 cases or convert such cases to ones under Chapter 7.”

The South Windsor, Conn.-based pasta manufacturing company filed bankruptcy on Feb. 8 under Chapter 11 case number 21-20111.


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