Case No. 07-48680.United States Bankruptcy Court, E.D. Michigan, Southern Division.
November 5, 2007
ORDER REQUIRING AMERICAN SPECIALTY CARS HOLDINGS, LLC TO AMEND DISCLOSURE STATEMENT
THOMAS TUCKER, Bankruptcy Judge
On October 22, 2007, American Specialty Cars Holdings, LLC (“Holdings”) filed a plan and disclosure statement, in a document entitled “American Specialty Cars Holdings, LLC Combined Plan of Reorganization and Disclosure Statement” (Docket # 767). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document (“Disclosure Statement”). The Court notes the following problems, which Holdings must correct.
First, Paragraph 3.3.1 of the Plan on page 19 describes the treatment for the Class V Claims of Interest. It states: “Upon Confirmation of the Plan, the Interests will be canceled and the New Interests will be issued. The New Interests shall constitute 100% of the equity of the Reorganized Debtor.” Holdings must amend this paragraph to state that Holdings will receive the New Interests.
Second, Paragraph IV.F of the Disclosure Statement on page 36 states: “Holdings refers to Debtor’s Schedule F which provides a listing of Debtor’s General Unsecured Creditors is on file at the Bankruptcy Court which aggregates $16,998,459.52 and the Bankruptcy Court’s claims register indicates filed unsecured claims in the amount of $__________.” Holdings must amend this paragraph to state the amount of unsecured claims indicated by the claims register.
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Third, Paragraph VII.A of the Disclosure Statement on pages 37-38 describing “Voting Procedures” is missing some required language. Holdings must amend this paragraph to add the following: “Any ballot that does not appropriately indicate acceptance or rejections will not be counted.”
Fourth, Paragraph VII.E of the Disclosure Statement on page 39, describing the “Effect of Confirmation,” is missing certain required language. Holdings must amend this paragraph to state:
If the plan is confirmed by the Court:
1. Its terms are binding on the debtor, all creditors, shareholders and other parties in interest, regardless of whether they have accepted the plan.
2. Except as provided in the plan:
In the case of a corporation that is liquidating and not continuing its business;
(1) Claims and interests will not be discharged.
(2) Creditors and shareholders will not be prohibited from asserting their claims against or interests in the debtor or its assets.
Fifth, the Paragraph 4.1.3 of Article IV of the Plan on page 19 is not properly formatted. Holdings must make it a separate paragraph from Paragraph 4.1.2 and properly indent it to make consistent with the format of the other paragraphs.
Accordingly,
IT IS ORDERED that Holdings must file, no later than November13, 2007, an amended combined plan and disclosure statement which corrects the above stated problems.
IT IS FURTHER ORDERED that Holdings also must provide to Judge’s chambers, no
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later than November 13, 2007, a redlined version of the amended combined plan and disclosure statement, showing the changes Holdings has made to “American Specialty Cars Holdings, LLC Combined Plan of Reorganization and Disclosure Statement,” filed October 22, 2007. Holdings must submit this redlined document to chambers electronically, through the Court’s order submission program.