Business Bankruptcy Headlines for 1/12/2013
Grubb & Ellis Disclosure Statement Approved
The U.S. Bankruptcy Court approved Grubb & Ellis' Disclosure Statement for its Joint Chapter 11 Plan of Liquidation and scheduled a March 6, 2013 confirmation hearing. As previously reported, "The Plan provides that on and after the Effective Date, all assets and liabilities of the Debtors shall be treated as though they were merged into one for all Plan purposes, including voting, Confirmation and distribution pursuant to the Plan. Multiple facts support consolidation of the Debtors for Plan purposes. Prior to the Petition Date, the Debtors shared a centralized cash management system and also shared common upper-level management and directors. The Debtors conducted business through a centralized cash management system, and aside from client trust funds, all monies were ultimately controlled from one general account. Likewise, each of the operating Debtors were obligated under the Senior Secured Credit Facility. The Debtors also filed consolidated tax returns. After the Petition Date, the Debtors assets were sold, in total, to BGC. There was no allocation of the purchase price to individual Debtor entities. Moreover, the $10,000,000 component of the purchase price attributable to an advance on a sharing of potential litigation proceeds cannot be allocated among individual Debtors' estates."
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