Hollister Construction committee renews motion for case conversion

By Caroline Salls

Pittsburgh, March 2 – Hollister Construction Services, LLC’s official committee of unsecured creditors renewed its motion for conversion of the company’s Chapter 11 case to Chapter 7, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, the court denied the committee’s original case conversion motion in November. However, that order did allow the committee to relist the conversion motion on two days’ notice to all interested parties.

In Monday’s renewed motion, the committee said the case should be converted because professional fees incurred to date exceed projected available funds by more than $1.3 million; secured creditor PNC Bank, NA is projected to receive only about $4 million on its $15 million secured claim; and filed unsecured claims exceed $800 million, including a $3.8 million priority tax claim filed by the State of New Jersey, “with little hope of a dividend.”

“With no unencumbered cash on hand, and no exit strategy, the debtor has no ability whatsoever to confirm a Chapter 11 plan,” the motion said.

The committee said a Chapter 7 trustee can ensure the completion of ongoing projects, prosecute causes of action and determine the allowance of claims at a lower cost, without the need to confirm a plan.

A hearing is scheduled for March 5.

Hollister is a Parsippany, N.J.-based construction company. The company filed bankruptcy on Sept. 11 under Chapter 11 case number 19-27439.

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