Charge Enterprises’ pre-pack plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., April 19 – Charge Enterprises, Inc.’s pre-packaged Chapter 11 plan of reorganization drew an objection from Region 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Vara said the court should deny confirmation of the plan because the exculpation provision insulates prepetition activity from liability.

The U.S. trustee also took issue with the broad releases in the plan.

“The debtor has failed to provide sufficient factual support for the proposed release of claims against third parties, including (but not limited to) Arena and the debtor’s officers and directors, by the debtor and its estate,” Vara said in his objection.

“The court should not approve such releases without first requiring the debtor to develop an adequate factual record as required by the standards governing plan confirmation, settlements and debtor releases.”

A hearing is scheduled for April 23.

The New York-based electric vehicle-charging infrastructure company filed Chapter 11 bankruptcy on March 7 under case number 24-10349.

© 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.