USA Synthetic Fuel seeks to convert cases to Chapter 7

By Mark Reccek

Bethlehem, Pa., Aug. 14 – USA Synthetic Fuel Corp. requested the conversion of its Chapter 11 cases to Chapter 7, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company said it has met the requirements for conversion as set forth in the bankruptcy code, specifically that it is a debtor-in-possession and that it originally could have initiated the cases under Chapter 7.

The motion also said the interests of all stakeholders would best be served by the conversion to Chapter 7.

“Given that the debtors have sold all of their assets of any meaningful value, have no business operations and do not have the resources necessary to propose and confirm a Chapter 11 plan, the debtors submit that conversion of these cases to cases under Chapter 7 of the bankruptcy code is necessary and appropriate,” the motion said.

A hearing on the matter is scheduled for Sept. 29.

Cincinnati-based USA Synthetic is a provider of clean energy systems. The company filed for bankruptcy on March 17 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 15-10599.

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