Multiple parties–including the SEC, the Louisiana Department of Revenue and the U.S. Trustee assigned to the Aeropostale case–filed with the U.S. Bankruptcy Court separate objections to Aeropostale’s Revised Third Amended Joint Plan of Reorganization.
The Trustee asserts, “The United States Trustee objects to the Third Amended Joint Plan because it contains broad non-debtor third-party releases and an exculpation provision. The plan proponents fail to meet their burden of proof with respect to whether this Court has subject matter jurisdiction to impose these releases and whether the Plan can be confirmed under the standards set forth by the Second Circuit in Metromedia.”
Read more Aeropostale bankruptcy news.