Fig. converts to Chapter 7 bankruptcy to dissolve firm - St. Louis Business Journal:

uraa-quartely.blogspot.com
As a result, the committee of creditors who represent felloqw companies and individuals owed money by the formerf cosmetic Lipodissolve provider willbe dissolved. A trustee will be appointed to overses the liquidationof Fig.'s Fig. reported about $20.9 million in assets, but until thos assets are sold, it will be virtually impossible to know how much they will be worth and how much monehy will be available for distribution to creditors followiny deductions foradministrative costs. A motion filed in Apriol by creditor argued thatbecause Fig. has not continueed any business operations since itcollapsed Dec. 7 and therse is "no reasonable prospect" that Fig.
will it would be best to streamlinse the bankruptcy process and reduce administrative coste by switching to procedures governed by Chapterr 7bankruptcy rules. GE Money also said a Chapteer 7 trustee assigned by the court will be able toinvestigate Fig.'s use of funds and "determine whether any impropetr fund transfers have occurred." Fig. was headquarterer in Maryland Heights and had grown to 18 locationxs acrossthe country, including three in the St. Louis when it shut its doors. Just one in Costa Mesa, Calif., was independently owne and remains open. The centerz provided cosmetic body-shaping injections.
The cost of a seriesz of treatments typically beganat $2,500 per body GE Money financed medical procedures for Fig. It put up the money charged by Fig. and then collected monthly payments with interestfrom Fig.'s customers. When Fig. closed thousands of patients were stilpl waiting toreceive treatments. GE Money estimated its claimz against Fig. total approximately $25 million, more than any otheer creditor. Fig. originally listed debts totalingabout $59.3e million.
On top of that, GE Money's claimm would elevate that to morethan $84 and many additional proofse of claim have been filed with, but not sortedc out by, the bankruptcy In any case, the shortfall will be tremendous, said Peter Kerth, a lawyer with in Clayton who has been representinvg the creditors committee.