Affirmative Insurance Holdings’ official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ motion for entry of an order extending the exclusive periods to file a Chapter 11 plan and solicit acceptances thereof.
The committee asserts, “The Debtors’ cases should be converted. A hearing on the Committee’s motion to convert is currently scheduled for March 10, 2016. In the event the motion to convert is granted, the exclusivity motion will be moot.”
The objection continues, “The Debtors simply have not earned the continuing benefit of exclusivity. Although plan negotiations did take place in these cases, as reported at the hearing on February 25, 2016, those negotiations have broken down, and the Committee has not been invited to any further discussions to reach a consensual resolution. Without the backing of the Committee and its members, the Debtors will be unable to confirm a plan – in addition to the Debtors’ inability to satisfy administrative expenses upon the effective date of a plan, there will not be an impaired, accepting class, determined without including any acceptances of the plan by any insider.”
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