On or before February 28, 2013, several parties filed Objections to
the Debtor's Disclosure Statement supporting its Plan of Reorganization. The Committee filed an Objection, arguing in
part that administrative claims are underestimated, the Debtor’s proposed
treatment of creditors is not feasible, and the Debtor’s assets are severely
depleted. RBS filed an Objection,
arguing in part that its liens are being stripped down, the Debtor’s equity
holders are retaining their interests without any infusion of cash, and the Plan
includes improper third-party releases. The
United States Trustee also filed an Objection, arguing in part that the
financial information set forth in the Debtor’s Disclosure Statement is not
adequate or feasible.
Additionally, RBS filed a Motion for Approval of
Administrative Claim seeking a superpriority administrative claim on account of
its interest in the Debtor’s collateral allegedly not having been adequately protected. The Debtor also filed a Motion to Extend Exclusive
Solicitation Period with respect to the exclusive period during which it may
solicit votes for its Plan, citing scheduling issues that cause the need for
such an extension.
