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Rooster Energy Bankruptcy Objection Filed

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Reorganized FLI (Farmland) filed with the U.S. Bankruptcy Court an objection to Rooster Energy’s Disclosure Statement.

The objection asserts, “Debtors RRI Energy Services…are one of six remaining sets of defendants in the Antitrust Litigation. The Antitrust Litigation was brought for price fixing of natural gas in violation of state law. Farmland’s claim against the Debtor Defendants is in the amount of $212,660,811….The Plan and Disclosure Statement provide that General Unsecured Claims (Class 6) are unimpaired. Farmland’s claim against the Debtor Defendants arising from the Antitrust Litigation is an unliquidated General Unsecured Claim. The General Unsecured Claim is likely to be liquidated in the Antitrust Litigation after consummation of the Plan.”

In addition, “In the event the claim in the Antitrust Litigation is liquidated outside of Bankruptcy Court, there is considerable risk that another court may interpret these provisions as impairing Farmland’s rights to collect on the claim. The Debtors should modify the Plan and Disclosure Statement to clarify that the releases, injunctions and discharges in the Plan do not affect the rights of Farmland to liquidate or collect on its claim after consummation of the Plan if they are not otherwise satisfied by the Effective Date of the Plan.”

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