Hancock Fabrics’ official committee of unsecured creditors and Pension Benefit Guaranty Corporation filed with the U.S. Bankruptcy Court separate objections to the Debtors’ Plan and related Disclosure Statement.
The committee asserts, “The Plan in its current form is not confirmable on its face because it includes certain provisions that are contrary to the Bankruptcy Code. Additionally, the Plan includes certain provisions that are unacceptable to some of the largest creditors in these cases and, unless amended, the Plan has a high likelihood of being voted down by the requisite creditors. As such, this Court should not approve the Motion and the Debtors’ estates should not be burdened with the unnecessary cost and delay associated with solicitation of the current drafts of the Plan and Disclosure Statement only to end up back at square one once the Plan is rejected.”
In addition, “Any more undue cost and delay in moving these cases forward will significantly diminish the little value that is left for unsecured creditors. The stark reality is that these Estates cannot afford to complete the solicitation process twice. Accordingly, the Committee requests that either (1) the Court direct the Debtors to amend their Plan and Disclosure Statement to address the issues raised herein, or (2) the Court deny the Motion so that the Committee may file its own plan and disclosure statement when the exclusive period to solicit terminates on May 12, 2017.”
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