Cengage Learning Statement, Objection Filed


Cengage Learning’s Second Lien Trustee’s filed with the U.S. Bankruptcy Court a statement in support of the official committee of unsecured creditors motion seeking an order continuing hearings on the Debtors’ Disclosure Statement and Plan of Reorganization and submits its preliminary objection to approval of the Disclosure Statement. The trustees state, “By this Joinder and Preliminary Objection, the Second Lien Trustee joins the Committee’s request to continue the hearing on approval of the Disclosure Statement for Debtors’ Joint Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code and objects to approval of the Disclosure Statement, which lacks information fundamental to the confirmation of any chapter 11 plan in these cases. As the Continuation Motion notes, the Disclosure Statement is a mere shell document filed solely to ensure the Debtors’ compliance with the Restructuring Support Agreement and the arbitrary self–serving timeframe that the Debtors’ first lien creditors have attempted to impose on the Debtors, the Debtors’ other creditors and this Court. In their haste to comply with the first lien creditors’ schedule, the Debtors have filed a patently unconfirmable Plan and related Disclosure Statement…Indeed, the Plan described in the Disclosure Statement is so lacking in fundamental information that it contains one single conclusory statement on the valuation that purportedly will dictate creditor recoveries and does not contain a liquidation analysis or sufficient descriptions of how material litigation will be addressed to enable any impaired class of creditors to make an informed judgment on how to vote on the Plan or evaluate the Plan’s compliance with many provisions of Bankruptcy Code section 1129.3 The reason why the Disclosure Statement is lacking in this vital information is apparent – the information does not exist – thus rendering consideration of the Disclosure Statement premature at best.”

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