Rubio’s Restaurants: U.S. trustee objects to plan of reorganization

By Sarah Lizee

Olympia, Wash., Dec. 7 – Rubio’s Restaurants, Inc.’s amended joint pre-packaged Chapter 11 plan of reorganization drew an objection Monday from Region 3 U.S. trustee Andrew R. Vara, according to a filing in the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Vara said he objects to the exculpation provisions of the plan “because they exculpate many persons and entities that are not fiduciaries of the debtors’ estates.”

“Further, the exculpation provided under the plan is not limited to actions or inactions taking place during the bankruptcy cases (i.e., between the petition date and the effective date), as required by applicable case law,” he said.

“For these reasons, the U.S. trustee respectfully submits the plan should not be confirmed absent revision of the exculpation related provisions.”

Rubio’s Restaurants is fast casual restaurant chain based in Carlsbad, Calif. The company filed bankruptcy on Oct. 26 under Chapter 11 case number 20-12688.

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