Twenty-Sixth Notice of Addition to SEBC Global Settlement Website (8/02/10)
Ongoing Frequently Asked Questions and News
Question 55 (posted August 2, 2010): Why has the Trustee sought a further extension of the Effective Date of the confirmed Plan?
Answer: Although at the present time the Trustee does not have a commitment from any party interested in entering into a transaction similar to the Transaction to be implemented under the Plan, the Trustee and his professionals, including SCS the Estate’s investment banker), continue to pursue potential investors for alternative transactions, although the likelihood that any such transaction will be consummated is speculative at this point. The Trustee also continues to manage the Jacksonville Property and hold it open for sale, although there is not a strong likelihood of sale at a reasonable price in the immediate
future.
With no immediate opportunity to either consummate reorganization under the Plan or an alternative version of the Plan, and no reasonable likelihood of sale of the Jacksonville Property on the horizon, the Trustee and his professionals continue to consult with the Noteholders, Senior and Subordinated Indenture Trustees, holders of preferred SEBC equity, and Legal Representative for Holders of SEBC Common Equity, all of whom have executed confidentiality agreements (collectively, the “Confidentiality Parties”), to review and evaluate a series of alternatives for winding up and closing the Bankruptcy Case in the event that no reorganization transaction can be consummated. Based on those discussions, which are still ongoing, the Trustee has determined to move for a further extension of the Effective Date Deadline through and including December 31, 2010. Pending further discussions with the Confidentiality Parties, however, the Trustee may consider withdrawing his request for further extension of the Effective Date Deadline at or before the August 17, 2010 status conference hearing in this case.
Source: PACER (Docket 5932)
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