NEW YORK, Nov. 25, 2015 /PRNewswire/ — On November 5, 2015, certain creditors of Abakan, Inc. (OTC US: ABKI) (“Abakan”) and certain creditors of MesoCoat, Inc. (“MesoCoat”) filed a Chapter 11 involuntary bankruptcy petition in the Southern District of Florida. On November 19, 2015, the Honorable Judge Cristol ruled that an automatic stay does not arise upon the filing of an involuntary petition. The secured creditor George Town Associates S.A. and Judgment Creditor Sonoro Invest, S.A., moved to dismiss the petitions of the creditors of MesoCoat and Abakan, saying they were filed in bad faith, and they further requested that the Abakan petition be converted to a liquidating Chapter 7 petition. Petitioning creditors dispute these allegations.
At a hearing to be held on December 16, 2015 at 3:30 p.m. in courtroom 15B at 500 Pearl Street, lower Manhattan, the United States District Court for the Southern District of New York (the “New York Court”) will be considering for approval certain proposed settlement transactions. This proceeding is open to the public. The court appointed Receiver over MesoCoat and Abakan, Robert W. Seiden, has been and continues to review several proposed offers for alternative settlement transactions to be presented to the New York Court. As of today, the proposals are from George Town Associates, S.A., Liquidmetal Coatings Inc., and a China-based company Jiangxi Hengda Group. . .