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First NBC Bank Bankruptcy Objection Filed

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First NBC Bank Holding’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtor’s motion for an extension of the exclusivity period and time within which the Debtor’s Plan may solicit Plan acceptances.

The objection explains, “The Debtor provides only two arguments for cause – first, that the Debtor obtained access to its financial records in mid-July 2017. Second, that competing plans would drive up administrative costs in this case. The Committee objects to the Exclusivity Motion because these two grounds are not sufficient ’cause’ under 11 U.S.C. §1121(d) to enlarge the Debtor’s exclusivity periods. Cause includes, at a minimum, a showing by the Debtor that ‘a showing of some promise of probable success’ in formulating and then obtaining confirmation of a proposed plan of reorganization…In other words, ‘[t]he debtor in a Chapter 11 case is also required to demonstrate that there is a reasonable probability that it will be able to propose a plan that will result in a successful reorganization within a reasonable time.’ Here, the Exclusivity Motion fails to aver any facts regarding the prospects for any reorganization. The Debtor is not operating.”

In addition, “The only ‘probable’ plan is a liquidating chapter 11 plan that converts the Debtor’s unsecured claims to equity, and attempts to preserve the Debtor’s tax attributes for the benefit of creditors in the process. The Committee is prepared to move expeditiously to formulate, file and seek confirmation of such a plan if the Debtor’s exclusivity periods are not extended.”

Read more First NBC Bank Chapter 11 news.