Former American Laser Centers seeks conversion of cases to Chapter 7

By Jim Witters

Wilmington, Del., Oct. 23 - CLA Hold LLC, formerly American Laser Centers, is seeking a conversion of its Chapter 11 bankruptcy cases to Chapter 7, according to documents filed Oct. 23 with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the sale of substantially all of the company's assets to Bellus ALC Investments I, LLC, was approved by the court on Jan. 31. The sale closed on Feb. 3.

"A substantial number of the claims against the debtors (including assumed liabilities) have been or will be satisfied pursuant to the asset purchase agreement, including, but not limited to, many claims that have been or may be asserted by the debtors' vendors, landlords and employees," the motion states.

The debtors' only asset is the remaining cash from the $175,000 wind-down fund.

The debtors no longer operate any business and have no funds to support the proposal of a plan of liquidation or solicit acceptances or obtain confirmation of a Chapter 11 plan, court documents state.

A hearing on the conversion request is scheduled for 4 p.m. ET on Nov. 15.

Farmington Hills, Mich.-based American Laser Centers provides laser hair removal and medical aesthetic services. The company filed for bankruptcy on Dec. 8, 2011. The Chapter 11 case number is 11-13853.

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