Thomas J. Tucker
Chapter 11
Judge Thomas J. Tucker
ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT
On February 27, 2014, Debtor filed a first amended plan and disclosure statement, in a document entitled "Plan of Reorganization and Disclosure Statement of Holley Mechanical Insulation, Inc." (Docket # 40). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problems, which Debtor must correct.
First, Debtor states, in Paragraph 3.1.1 of the Plan on page 13 that:
The Comerica claim is the basis for an []all asset lien on the debtor's assets, which is the sole secured claim in this case. The value of the claim is set forth in the liquidation analysis The assets to which Comerica holds liens on total $20,992.00 though the largest amount, the $18,292.00 bank account is subject to fluctuations based on operational expenses. Since Comerica will be paid 100% there will be no unsecured claim of Comerica.
However, Debtor's Liquidation Analysis (Ex. A on pages 34-36) indicates "None" in the column for the "Creditor Holding lien" on the $18,292.00 Bank Account. And Debtor indicates "N/A" in the column for the "Amount of Secured Claim." The Liquidation Analysis also indicates that there is $18,292.00 in "Equity" based on the Bank Account. Debtor must revise its Liquidation Analysis so that it indicates that Comerica Bank holds a lien on the $18,292.00 in Debtor's Bank Account.
Second, Debtor must delete Paragraphs VI.E.2.b and VI.E.2.c on pages 33-34 of the Disclosure Statement, and the last sentence of Paragraph VI.E on page 34 of the Disclosure Statement.
Third, in the description of the treatment of claims in Group II - Priority Tax Claims on page 12 of the Plan, Debtor must state the name of the creditor(s) with such claims, and the amount(s) of such claims. If there are no such claims, Debtor must say so.
Accordingly,
IT IS ORDERED that no later than March 5, 2014, Debtor must file an amended combined plan and disclosure statement that is consistent with this Order.
IT IS FURTHER ORDERED that no later than March 5, 2014, Debtor also must file a redlined version of the amended combined plan and disclosure statement, showing the changes Debtor has made to the "Plan of Reorganization and Disclosure Statement of Holley Mechanical Insulation, Inc." filed February 27, 2014.
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Thomas J. Tucker
United States Bankruptcy Judge