Exelco-KBC Bank Bankruptcy Case 'A Mess', Says US Judge
The Chapter 11 bankruptcy protection case of Belgian trader Exelco NV is “a mess”, said U.S. Bankruptcy Judge Kevin Gross who instructed Exelco and its main creditor, KBC Bank NV, to iron out the complex disputes before he attempts to resolve them.
The issues include whether the case should take place in Belgium or the United States, and who should speak for Exelco.
The bank is petitioning for the case to take place in Belgium where it is based. It says a court in the country has already named an administrator whose authority may supersede that of the company’s management.
However, Exelco responds that it trades globally and is working on a global restructuring program, so the US bankruptcy court is logical.
Exelco filed for Chapter 11 bankruptcy protection in the US in September, listing up to $100 million in liabilities, according to court filings.
KBC Group NV and Standard Chartered Bank Plc are said to be among its biggest creditors.
Exelco was founded by Leon and Lior Kunstler and Jean Paul Tolkowsky in 1993.