Case No. 11-46419.United States Bankruptcy Court, E.D. Michigan, Southern Division.
July 22, 2011
ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT
THOMAS TUCKER, Bankruptcy Judge
On July 21, 2011, Debtor filed a plan and disclosure statement, in a document entitled “Debtor’s Amended Combined Plan and Disclosure Statement” (Docket # 35). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document (“Disclosure Statement”). The Court notes the following problems, which Debtor must correct.
First, with regard to each class of secured claims treated in the Plan on pages 7-9, Debtor must state specifically the treatment proposed under the Plan (i.e., on what date(s) Debtor will pay the claim and the amount(s) the Debtor will pay). If the timing and amount of payment(s) are not currently known because they depend on the timing and amount of proceeds from the future liquidation of assets, Debtor must state this, and must give its best estimate as to timing and payment, and the order in which the secured claims will be paid.
Second, with regard to each class of secured claims treated in the Plan on pages 7-9, unless Debtor states that the secured claim will be paid in full (or the creditor’s collateral will be surrendered to the creditor) on or before the effective date of the Plan, or the date the claim is due for payment(s), whichever is later, Debtor must state that the class is impaired.
Third, the Plan must state what the effective date of the Plan will be, in relation to the date on which an order confirming the Plan is entered.
Page 2
Accordingly,
IT IS ORDERED that no later than July 26, 2011, Debtor must file a second amended combined plan and disclosure statement which corrects the above stated problems.
IT IS FURTHER ORDERED that Debtor also must provide to Judge’s chambers, no later than July 26, 2011, a redlined version of the second amended combined plan and disclosure statement, showing the changes Debtor has made to “Debtor’s Amended Combined Plan and Disclosure Statement” (Docket # 35), filed July 21, 2011. Debtor must submit this redlined document to chambers electronically, through the Court’s order submission program.