Wireless Systems statement draws objection from administrator

By Sarah Lizee

Olympia, Wash., Sept. 19 – Wireless Systems Solutions, LLC’s disclosure statement for its Chapter 11 plan of reorganization drew an objection from the bankruptcy administrator, according to court documents filed with the U.S. Bankruptcy Court for the Eastern District of North Carolina.

The bankruptcy administrator said the disclosure statement doesn’t provide enough information to creditors.

Specifically, the disclosure statement lists 10 separate possible causes of action which the debtor seeks to pursue, but the debtor doesn’t provide enough information regarding the likely success, timeframe, or expense of these causes of action.

“Given that the debtor is using the monetary outcome of these causes of action as a means of funding the plan the debtor must provide hypothetical investors with more information to determine whether the plan is feasible,” the bankruptcy administrator said.

The bankruptcy administrator also said that the debtor needs to prove that confirmation of the plan is not likely to be followed by the need for further liquidation or reorganization.

“The debtor’s performance for the duration of the bankruptcy filing has not demonstrated the debtor’s ability to generate enough income to support all plan payments,” the bankruptcy administrator said.

They also said the debtor should be prepared to explain the proposed liquidation analysis and provide evidence of the liquidation values attributed to the debtor’s assets at the confirmation hearing.

The company has received conditional approval of the disclosure statement. A further hearing is scheduled for Sept. 29. The plan confirmation hearing is still scheduled for Oct. 12.

The Morrisville, N.C.-based cellular network solutions company filed Chapter 11 bankruptcy on March 9, 2022 under case number 22-00513.

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