Multiple parties – including Aztec Oil & Gas, Christian, Smith & Jewell, Trek Energy and Trek Partners – filed with the U.S. Bankruptcy Court separate objections to the Chapter 11 Plan of Reorganization proposed by creditors Franklin Fisher, Jr. and The Livingston Growth Fund Trust for Aztec Oil & Gas.
The Debtors state, “The Plan cannot be confirmed because it does not satisfy all of the requirements under 1129(a). Franklin Fisher, Jr. and The Livingston Growth Fund Trust have the burden of proof as to compliance with Section 1129(a) by a preponderance of the evidence….The ‘best interest’ test requires either that (i) each claimant or interest holder in an impaired class has accepted the plan, or (ii) the plan provides that they will receive/retain on the effective date of the plan as much as they would receive/retain in a chapter 7 liquidation.”
In addition, “The Plan is not in the best interest of the creditors as it clearly provides that the interest holders – the Plan Proponents – will retain control and equity ownership in the newly reorganized company while providing no plans of payment to any creditor. This is clearly not in the best interest of any creditor. Further, the Plan Proponents do not even attempt to explain how their plan provides a better outcome for creditors than a Chapter 7 liquidation. A plan proponent demonstrates that the plan meets the best interests test by providing a liquidation analysis with the disclosure statement.”
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