Rodeo Creek Chapter 11 cases dismissed after sale proceeds fall short

By Lisa Kerner

Charlotte, N.C., July 12 - Rodeo Creek Gold Inc.'s request to have its Chapter 11 cases dismissed was granted by the U.S. Bankruptcy Court for the District of Nevada, according to a Friday court filing.

As previously reported, the company said the sale of substantially all of its assets yielded proceeds that were far less than originally expected. As a result, no distributions were available to either administrative claimants or unsecured creditors except proceeds from the lender agent's collateral and to the extent the agent has agreed to share such collateral with them, a prior court motion said.

Distribution of the proceeds of the agent's collateral through either a Chapter 11 plan or by a Chapter 7 trustee would be impractical and result in unnecessary delay and increased administrative costs, the company said.

According to the July 12 filing, the debtors are ordered to transfer the trust assets, including the following amounts from the proceeds of the agent's collateral, to the trust: $1 million to establish the GUC Trust Fund; $293,500 on account of the essential vendor adjustment; and $175,000 to fund the corporate wind-down of the debtors.

Rodeo Creek Gold, a Reno, Nev.-based mining company, filed for bankruptcy on Feb. 25 under Chapter 11 case number 13-50301.

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