Rincon Island trustee seeks conversion of bankruptcy case to Chapter 7

By Caroline Salls

Pittsburgh, Dec. 13 – Rincon Island LP Chapter 11 trustee Jason R. Searcy asked the U.S. Bankruptcy Court for the Northern District of Texas to convert the company’s Chapter 11 case to Chapter 7, according to a motion filed Tuesday.

Searcy said he “believes that there is no viable avenue for reorganization by the debtor’s estate.”

According to the motion, Rincon Island’s oil and gas leases, which are its primary assets, have been conveyed with approval of the court to the California State Lands Commission, and a motion to abandon the remaining real property interests and interests in equipment has been filed.

As a result, the trustee said conversion is in the best interests of Rincon Island’s creditors.

Rincon Island, a Santa Maria, Calif.-based oil and gas production company, filed for bankruptcy on Aug. 8, 2016. The Chapter 11 case number is 16-33174.

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