Case No. 11-54788.United States Bankruptcy Court, E.D. Michigan, Southern Division.
August 26, 2011
ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT
THOMAS TUCKER, Bankruptcy Judge
On August 23, 2011, Debtors filed a plan and disclosure statement, in a document entitled “Debtor’s Combined Disclosure Statement and Plan of Reorganization” (Docket # 43). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document (“Disclosure Statement”). The Court notes the following problems, which Debtors must correct.
First, Debtor must include the heading “Article III Classification of Claims and Interests” on page 8 of the Plan before it lists the treatments for claims and interests.[1]
Second, Debtor must treat the claim of Lawrence Yaldoo as a secured claim in a separate class.[2] Debtor must state the amount of the claim; the property securing the claim (if real estate, the full address, including city and state); the fair market value of the property securing the claim; whether any portion of the claim is unsecured; and if so, whether the secured creditor will have an unsecured deficiency claim, to be included and treated in the class of general unsecured claims; and if so, the amount of such claim.
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Third, regarding the Class 1 secured claim of Dawn G, and the Class 4 secured claim of Oakland County/Waterford DPW, Debtor must also state the property securing the claim (if real estate, the full address, including city and state). It appears from the Liquidation Analysis that the secured claims of Dawn G, Oakland County/Waterford DPW, and Lawrence Yaldoo are all secured by the same property. If this is the case, Debtors must state in Article III of the Plan (not just in the Liquidation Analysis) the priority of each secured creditor.
Fourth, Debtor must correct the typographical error in Paragraph II.A of the Disclosure Statement on page 19 so that the “Petition Date” is stated as “5/25/11” rather than “5/25/10.”
Fifth, Debtor has not provided any statement regarding whether Salam Kalabat receives fringe benefits. In Paragraph II.B of the Disclosure Statement on page 19, Debtor must provide this information. If Salam Kalabat does not receive fringe benefits, Debtor must state this. Debtor must also provide this information in Paragraph VI.C of the Disclosure Statement on page 31.
Sixth, Debtor must provide information regarding any post-petition financing order in Paragraph III.B of the Disclosure Statement on page 20. If there have been no such orders, Debtor must state this.
Seventh, in Debtor’s Liquidation Analysis attached to the Disclosure Statement at page 41, Debtor must state the full address, including city and state, of the real estate that is the collateral for the secured claims.
Accordingly,
IT IS ORDERED that no later than August 31, 2011, Debtor must file an amended combined plan and disclosure statement which corrects the above stated problems.
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IT IS FURTHER ORDERED that Debtor also must provide to Judge’s chambers, no later than August 31, 201, a redlined version of the amended combined plan and disclosure statement, showing the changes Debtor has made to “Debtor’s Combined Disclosure Statement and Plan of Reorganization” (Docket # 43), filed on August 23, 2011. Debtor must submit this redlined document to chambers electronically, through the Court’s order submission program.