Knotel Cleared to Seek Votes on Chapter 11 Liquidation Plan

Knotel, Inc. won court approval to solicit votes on its Chapter 11 plan, overcoming an objection from the Justice Department’s bankruptcy watchdog over the lack of a detailed liquidation analysis.

The shared work-space provider’s disclosures give creditors enough information to make an informed decision, Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware said Wednesday.

The DOJ’s U.S. Trustee’s Office had objected to Knotel’s failure to analyze how it would fare if it liquidated under Chapter 7 instead of Chapter 11.

Chapter 11 would allow the company to retain control of the process and distribute ...