WILMINGTON, Del., Dec. 20, 2019 (GLOBE NEWSWIRE) -- The United States Bankruptcy Court for the District of Delaware ruled today that Yueting Jia’s (“YT”) Chapter 11 case should continue before the Central District of California and overruled the motion by creditor Shanghai Lan Cai Asset Management Co., Ltd. (“SLC”) to dismiss the bankruptcy case.
YT's counsel stated at the hearing that SLC's basis for dismissing the case was driven by self-interest at the expense of the general creditor body. SLC, and a few creditors who joined it, revealed their willingness to eliminate other creditors' ability to receive a distribution from YT’s Chapter 11 estate by dismissing the case to achieve their goal of collecting upon their claims.
At the hearing, the creditors' committee, which represents the collective interests of all unsecured creditors, voiced strong disagreement with SLC's request for dismissal. Indeed, as counsel for the creditors’ committee indicated, creditors with aggregated claims of approximately $950 million actively filed joinders to the committee’s opposition to SLC’s dismissal request, while creditors with aggregate claims of only $180 million joined SLC in seeking to dismiss YT's Chapter 11 case. The remaining creditors also didn't join SLC's motion. Counsel stated that completing this Chapter 11 case as soon as possible and smoothly would be the best path to maximize recoveries for all creditors. The creditors' committee lawyer also stated that the restructuring process is progressing and that while it had a “rocky start,” counsel expressed satisfaction at the continuing flow of information from YT to enable the creditors’ committee to evaluate and determine whether to support YT’s plan. At the hearing, lawyers representing ten creditors all voiced opposition to SLC's request to dismiss the case.
The Delaware bankruptcy court also decided that YT's Chapter 11 case should be transferred to the Central District of California. While YT and the creditors’ committee both believed the Chapter 11 case should continue in Delaware where it was originally filed, YT welcomes the Court’s ruling that transferring venue to California will provide the most efficient solution for all creditors. YT will continue to work with his creditors’ committee and all creditors to speed completion of his restructuring as soon as possible in light of the Court's decision.
Meanwhile, YT and his team strongly oppose the latest motion filed by the US Trustee seeking to appoint a trustee to oversee his Chapter 11 Case. The facts provided in the motion are spurious, and the allegations of YT's dishonesty are completely unsubstantiated. YT intends to discuss the inaccuracies and false conclusions stated in this motion with the new US Trustee following the transfer to the Central District of California. YT and his team are confident that they can maximize the interests of all creditors, and successfully complete his restructuring plan before the bankruptcy court for the Central District of California.