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In re Oakwood Country Club, Inc. (Case No. 10-60246) 11/22/2010

The United States Trustee objected to approval of the Disclosure Statement on the ground that the Chapter 11 plan is not confirmable on its face.  Four classes are impaired under the plan, but the plan does not provide that the creditors in those classes will be allowed to vote whether to accept or reject the plan; therefore, the plan itself is not confirmable.  The Court noted that approving a disclosure statement, when a facially non-confirmable plan is attached, would be akin to inadequate disclosure and misrepresentation. Therefore, the Court sustained the United States Trustee's objection.

Date: 
Monday, November 22, 2010
Category: 
Chapter 11 Issues
Confirmation of Plan
Disclosure Statement
Chapter: 
11