In a motion filed May 30, 2025, the United States Trustee is seeking to either convert or dismiss a long-running Chapter 11 bankruptcy case of Credivalores-Crediservicios, S.A., a Colombian financial services company whose reorganization plan has remained stalled for nearly a year despite court approval.
The U.S. Trustee's motion, filed in the Southern District of New York Bankruptcy Court, argues that despite having its plan confirmed in July 2024, the company has been unable to implement it and has failed to pay more than $140,000 in required quarterly fees.
"The Court entered an order confirming the plan in this bankruptcy case nearly one year ago. Nevertheless, the plan has not gone effective," wrote Greg M. Zipes, trial attorney for William K. Harrington, the U.S. Trustee for Region 2, in the motion. "The Debtor also owes significant United States Trustee quarterly fees which it has not been paying and continues to be unable to pay."
Credivalores filed for Chapter 11 protection on May 16, 2024, with a prepackaged plan aimed at restructuring notes issued under a February 7, 2020 indenture between the company and the Bank of New York Mellon. While Judge David S. Jones confirmed that plan on July 3, 2024, the company has yet to file a notice of effective date, indicating the restructuring has not been implemented.
Court records reveal that a major complication arose when a concurrent bankruptcy proceeding was initiated against Credivalores in Colombia. At a September 5, 2024 hearing, the debtor's counsel informed the court that "since the company is now the subject of another bankruptcy proceeding in another country... it was incumbent upon us to inform the Court."
The international bankruptcy complications have persisted for months, with the company reportedly needing approval from the Colombian court for certain expenditures. According to the U.S. Trustee, this has left the company unable to confirm it can pay administrative fees, including the quarterly U.S. Trustee fees that are required by law.
"The Debtor is delinquent in the payment of United States Trustee quarterly fees pursuant to 28 U.S.C. §1930(a)(6), together with any applicable interest," according to the motion. Records show that Credivalores owes $140,109.84 in fees as of May 23, 2025, contradicting the company's own April 2025 monthly operating report, which incorrectly indicated it was current on these payments.
The U.S. Trustee's motion cites two specific legal bases for conversion or dismissal under the Bankruptcy Code: "failure to pay any fees or charges required under chapter 123 of title 28" and "inability to effectuate substantial consummation of a confirmed plan."
"There is no evidence that the Debtor can go effective by restructuring the Indenture as contemplated in the Plan," the motion states.
A hearing on the motion is scheduled for July 2, 2025, at 10:00 a.m. before Judge Jones. The hearing will be conducted via Zoom for Government, according to the notice of motion.
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