Summit Financial committee asks court to limit exclusivity extension

By Caroline Salls

Pittsburgh, July 30 – Summit Financial Corp.’s official committee of unsecured creditors objected to the length of the company’s proposed extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

The committee said the requested extension of the exclusive plan-filing period through Oct. 18 and the vote solicitation period through Dec. 18 is not warranted.

The creditor group said it would not oppose an extension of the plan-filing period through Aug. 17.

The committee said its opposition is not meant to suggest that it does not think the case parties are incapable of reaching consensus on a plan.

However, the committee said “working toward a consensual plan and achieving one are two different things,” and the committee should have the option of filing its own plans if one proposed by Summit does not provide for adequate treatment of unsecured creditors.

Plantation, Fla.-based Summit provides financing by purchasing and servicing retail installment sales contracts. The company filed bankruptcy on March 23 under Chapter 11 case number 18-13389.

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