Burro Sand committee says disclosure statement lacks information

By Sarah Lizee

Olympia, Wash., June 15 – Aequor Mgt LLC’s (Burro Sand) disclosure statement for its Chapter 11 plan of liquidation drew an objection from the official committee of unsecured creditors, according to documents filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Texas.

The group said the disclosure statement does not provide the information needed for creditors to make an informed judgment because key aspects of the proposed plan are left out.

As an example, the disclosure statement does not include the terms regarding a proposed debtor-in-possession loan or a proposed cash infusion.

The debtors also do not adequately disclose the treatment of the secured claim of Independence TX, LLC, a non-debtor affiliate, the committee said.

The debtors also do not disclose the basis for the broad non-debtor releases that are proposed in the plan, the committee added.

The committee called the plan itself “patently unconfirmable” due to the releases it provides.

The group also said the proposed oversight of, and funding for, the creditor trust established under the plan is inadequate.

Tyler, Tex.-based Burro Sand is a frac sand mining and processing plant. The company filed bankruptcy on Jan. 5 under Chapter 11 case number 23-60010.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.