Manchester largest unsecured creditors vote against plan; most creditors vote to approve

By Caroline Salls

Pittsburgh, June 11 - Manchester Inc.'s plan of reorganization was accepted by a majority in number of voting creditors, but holders of $32.98 million of general unsecured claims voted to reject the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

According to the vote tabulation, the one holder of $321.3 million in senior lender secured claims and the one holder of $2 million in senior lender unsecured claims both voted to accept the plan.

However, although 36, or 75%, in number of general unsecured claims voted to accept the plan versus 12, or 25%, in number voting to reject it, holders of only $195,002, or 0.59% in amount, of these claims voted to accept the plan.

The holders of $32.98 million of general unsecured claims that voted to reject the plan represented 99.41% of the claims held by amount.

The plan confirmation hearing is scheduled for June 12.

Manchester, a Dallas-based auto dealership that sells and finances used cars to buyers with limited credit histories or past credit problems, filed for bankruptcy on Feb. 7. Its Chapter 11 case number is 08-30703.

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