AltosGroups’ plan of liquidation draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., May 9 – AltosGroups, LLC’s Chapter 11 plan of liquidation drew an objection from Region 21 U.S. trustee Mary Ida Townson, according to documents filed Monday with the U.S. Bankruptcy Court for the Middle District of Florida.

Townson said the plan is not fair and equitable as it unfairly discriminates between similarly situated unsecured creditors.

The plan proposes to return $4.6 million in “deposits” to certain creditors while other similarly situated creditors stand to receive nothing, the U.S. trustee said.

“Creditors who are claiming any interest in the $4.6 million may have had their interests merged into the judgments they obtained pre-petition and therefore should be treated the same as other general unsecured creditors,” Townson said in her objection.

She said the debtors also filed the plan in bad faith by failing to disclose early in the case that the $4.6 million was being held in a non-debtor account, failing to obtain proof of funds from the non-debtor account, and failing to transfer all $4.6 million into the company’s debtor-in-possession account.

AltosGroups is a Davenport, Fla.-based hotel lender. It filed Chapter 11 bankruptcy on Jan. 9 under case number 23-00048.

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