Highway Technologies' Creditors Press For Ch. 7 Conversion

Law360, Wilmington (June 07, 2013, 5:14 PM ET) -- Highway Technologies Inc.'s creditors committee urged a Delaware bankruptcy judge Thursday to convert its case to Chapter 7, saying a piecemeal liquidation in Chapter 11 offers little for the shuttered traffic-safety company or its unsecured creditors.

The usual benefits of Chapter 11 are lost on a company that has ceased operations and terminated most of its staff, while the added costs of the process threaten to swallow up the few unencumbered assets that might go to unsecured creditors, according to the committee's conversion motion.

“It does...
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