Alpha Media: U.S. trustee says disclosure statement lacks information

By Sarah Lizee

Olympia, Wash., March 4 – Alpha Media Holdings LLC’s amended disclosure statement for its Chapter 11 plan of reorganization drew an objection from Region 4 U.S. trustee John P. Fitzgerald, III, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Fitzgerald said the disclosure statement in its current form cannot be approved because it lacks information.

In addition, the U.S. trustee said the company proposes shortening the deadline to vote on the plan without providing a plausible explanation as to why the deadlines should be shortened.

Fitzgerald also said that the plan should not provide that a failure by creditors in a class to cast any votes is deemed acceptance of the plan by the class.

He also said that the statement contains overly-broad non-debtor third parties and exculpation provisions, doesn’t include a bar date by which claims need to be filed, and may contain an impermissible request for approval of certain management incentive plan provisions.

Alpha Media is a Portland, Ore.-based radio station operator. The company filed bankruptcy on Jan. 25 under Chapter 11 case number 21-30209.

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