MPC Computers creditor's case conversion motion denied by court

By Caroline Salls

Pittsburgh, March 19 - MPC Computers LLC transition services agreement creditor Gateway, Inc.'s motion for conversion of the company's Chapter 11 bankruptcy case to Chapter 7 was denied Thursday by the U.S. Bankruptcy Court for the District of Delaware.

According to Gateway's motion, MPC has ceased all operations and liquidated substantially all of its assets.

"Indeed, it appears that the debtors are mere shell companies operating solely for the purposes of collecting outstanding receivables and investigating potential avoidance actions," Gateway said in the motion.

"There is no hope of a successful reorganization."

In addition, Gateway said the company is incurring needless administrative expenses.

MPC, a major U.S. PC vendor since 1991, provides enterprise internet technology hardware services to mid-sized businesses, government agencies and education organizations. The company filed for bankruptcy on Nov. 6, 2008. Its Chapter 11 case number is 08-12667.

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