Rentech’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ disclosures in the Combined Plan and Disclosure Statement.
The committee asserts, “The Combined Plan and Disclosure Statement is based on a flawed process that is designed to protect and benefit GSO and the Debtors’ insiders, and leave general unsecured creditors – the fulcrum security in these cases – with only a hope and a prayer, and no control over the process or outcome. To the extent that the Combined Plan and Disclosure Statement move forward, it should not be on the lightning fast timeline that is proposed. Indeed, there is no good reason why these cases must move forward at the pace dictated by the Debtors and GSO. The Debtors are mere holding companies with no operations. Additional time will allow any proposed sales to finalize and for proceeds to flow, eventually, upstream to the Debtors for distribution.”
In addition, “Additionally, more time will allow recoveries to unsecured creditors to be properly quantified in a disclosure statement prior to solicitation….Importantly, the proposed plan is premised on one voting class (Class 3 General Unsecured Claims), and thus, the Debtors will fail to achieve confirmation of the Combined Plan and Disclosure Statement if the general unsecured creditors class votes against the plan. If the unsecured creditors are compelled to vote against the plan due to the lack of adequate disclosures, then the accelerated process proposed by the Debtors will be for naught and a waste of time and money….Finally, given that unsecured creditors are the fulcrum in these cases, the Committee alone must have control over the selection of the liquidating trustee and the wind down post-confirmation.”
The committee also filed a separate objection to the Company’s motion to sell the assets of non-debtor subsidiaries.
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