Mississippi Phosphates must file plan by April 29 to avoid conversion

By Caroline Salls

Pittsburgh, April 13 – Mississippi Phosphates Corp. must file a Chapter 11 plan and disclosure statement by April 29, according to an agreed order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Mississippi.

If the company does not file a plan by that date, its Chapter 11 bankruptcy case will be converted to Chapter 7.

The agreement was reached in responses to a previously reported motion filed by the U.S. Trustee for Mississippi Phosphates’ case that asked the court to either convert the case to Chapter 7 bankruptcy or dismiss it.

Acting Region 5 U.S. trustee Henry G. Hobbs Jr. said in the motion that the company closed the sale of substantially all of its assets in October.

“There are no hard or tangible assets left for the debtors to protect through these Chapter 11 cases,” Hobbs said in the motion.

“These Chapter 11 cases have been pending for over one year, but the debtors have not filed a disclosure statement and a confirmable plan of reorganization.”

Mississippi Phosphates, a Pascagoula, Miss., fertilizer company, filed for bankruptcy on Oct. 27, 2014. The Chapter 11 case number is 14-51667.

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