Prime Trust and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
The Chapter 11 filing follows the permanent appointment of John Guedry as receiver for the company and the appointment of John Guedry, John Wilcox and Michael Wyse as the sole members of a special restructuring committee vested with authority to oversee the company’s Chapter 11 Cases by Judge Susan Johnson of the eighth judicial district court of the State of Nevada.
The company, under the supervision and direction of the special committee, continues to manage their businesses as “debtors-in-possession” under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the bankruptcy code and orders of the bankruptcy court.
The company intends to file a number of motions with the bankruptcy court designed to facilitate the company’s orderly evaluation of all strategic alternatives, including potentially a sale of the company’s assets and operations as a going concern. It is anticipated that these motions will include requests to continue to pay wages and provide benefits to ongoing employees as usual.
The company believes that the commencement of the Chapter 11 cases will provide a transparent and value-maximizing process for the benefit of the company’s clients and stakeholders.
