Just to provide a little background of disclosure requirements for those who are unaware of the process. No need to get concerned with where we are in the process...
requirement of disclosure statement
A disclosure statement must contain adequate information for creditors and shareholders to make an informed judgment about a plan of reorganization. See In re Scioto Valley Mortgage Co., 88 B.R. 168, 170 (Bankr. S.D. Oh. 1988). Section 1125(b) of the Bankruptcy Code provides the threshold level of information that must be included in a disclosure statement:
Factors Considered by the Court
Bankruptcy courts exercise broad discretion when deciding whether to approve or reject a disclosure statement. In making a determination, courts often look at whether the disclosure statement contains the following types of information:
1.the circumstances that gave rise to the filing of the bankruptcy petition;
2.a discussion of assets available and their value; 3.a summary of what the debtor anticipates to do going forward;
4.where the information used in the disclosure statement came from;
5.a disclaimer stating that no statements or information regarding the debtor, its assets or securities are authorized, other than those included in the disclosure statement;
6.the debtor's condition during its bankruptcy proceeding;
7.claim information;
8.an analysis showing what creditors would receive from the debtor were it liquidated under chapter 7;
9.the accounting and valuation methods used in the disclosure statement; 10.information regarding the debtor's management going forward;
11.a summary of the plan of liquidation or reorganization;
12.a summary of the administrative expenses, including bankruptcy professional fees;
13.a review of the debtor's accounts receivables;
14.financial information necessary to allow a creditor to decide whether to approve or reject the plan;
15.information regarding the risks being taken by the creditors;
16.the amount expected for recovery through avoidance actions;
17.a discussion of nonbankruptcy litigation;
18.tax consequences of the plan; and,
19.the debtor's relationship with any affiliates.
See In re Scioto Valley Mortgage Co. supra., 88 B.R. at 170-71.
Look how many pieces of the puzzle have been omitted. I don't see any way the Court can accept this plan. They are hiding the true value of ABWTQ. The Judge is not going to like this. But then again....
"The conduct of Bankruptcy proeedings not only should be right but must seem right"
AI
