Advantage Holdco Chapter 11 plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Dec. 3 – Advantage Holdco, Inc.’s Chapter 11 plan drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Vara said confirmation should be denied because the plan and plan supplement would provide prospective, post-effective date exculpation.

The members of the liquidating trust committee should not receive exculpation because they are disclaiming their status as fiduciaries, the U.S. trustee said.

“No entity should receive prospective exculpation,” Vara said in his objection. “Just as post-effective date entities cannot receive prospective debtor releases, so too they cannot receive prospective exculpation.”

The combined hearing on final approval of the statement and confirmation of the plan is scheduled for Dec. 10.

Advantage Holdco is an Orlando, Fla.-based rental car company. The company filed bankruptcy on May 26, 2020 under Chapter 11 case number 20-11259.

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