"Some creditors and equity holders have objected".
You better believe it! And it's not going to stop anytime soon.
PNL Pomona LP has filed an opposition today.
“Cause” Does Not Exist to Allow for Yet Another Extension of Exclusivity.
(1) This Case is Complex by Debtors’ Own Fault.
(2) Debtors’ Have Already Been Granted Six Extensions; They Have Had Enough Time.
(3) With Each Hearing and New Motion, It Becomes More Clear That Debtors’ Are NOT Acting in Good Faith.
(4) The Committee Issues Create Serious Concerns.
(5) Fourteen and a Half Months is Too Long.
(6) Creditors are Willing to Stand Up to Debtors’ Demands.
(7) Further Extending Exclusivity Would be Inappropriate.
Exclusivity Must Be Terminated If Debtors Want to Continue With Their “New Value” Plan.
“A ‘new value’ plan may not provide pre-petition equity holders with the exclusive right to obtain equity in the reorganized debtor unless the exclusivity is terminated or the opportunity to acquire equity in the reorganized debtor is subject to competitive bidding. 203 North LaSalle Street P’Ship, 526 U.S. 434, 454.
Debtors’ most recent Plan and Disclosure Statements fail to comply with the requirements of 11 U.S.C. §1129(b). First, the Debtors’ Plan and Disclosure Statements fail to meet the “fair and equitable” standard laid out in §1129(b). Secondly, Debtors are seeking “new value” through preexisting equity holders despite the fact that the secured and unsecured claims remain impaired and are not appropriately dealt with under §1129(b).
Consequently, Debtors must comply with the standards of LaSalle. As such, Debtors must, again, amend their Plan to acquire new equity through competitive bidding or allow exclusivity to be terminated. Debtors are not above these laws.
Source: PACER (Docket 1499)
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