First Guaranty committee objects to shortening notice

Chicago, Sept. 8 – First Guaranty Mortgage Corp.’s official committee of unsecured creditors objects to the company’s motions to shorten notice, according to a filing with the U.S. Bankruptcy Court for the District of Delaware on Wednesday.

The committee fears that the expeditious calendar is based on an arbitrary deadline set by the insider cash flow DIP lender in the DIP financing order.

By expediting the voting process, voters will not have all the necessary information on such a schedule because there is no guaranteed that a successful bidder would be identified before the plan voting deadline.

While the committee has honored haste when expediency was a factor, the current proposed short sale timeline should not be compressed, the committee said.

The Plano, Tex.-based mortgage lender filed Chapter 11 bankruptcy on June 30 under case number 22-10584.

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