Metropolitan Mortgage indenture trustee objects to disclosure statement

By Caroline Salls

Pittsburgh, May 23 - Metropolitan Mortgage & Securities Co. Inc.'s indenture trustee objected to the company's disclosure statement, saying it does not provide enough information to creditors, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Washington.

The indenture trustee, U.S. Bank Trust NA, said the disclosure statement related to Metropolitan Mortgage's plan of reorganization does not provide securityholders with enough information to make an informed decision on the plan because it does not let them understand how their claims are being treated under the plan or understand the legal implications of their claims under the plan.

"As this court is aware, the securityholders are predominantly individuals, many of whom are elderly, and most of whom are not financially sophisticated," the filing said.

"The securities, on the other hand, are complicated and different issuances of securities differ from one another."

Spokane, Wash.-based Metropolitan filed for bankruptcy on Feb. 4, 2004. Its Chapter 11 case number is 04-00757.

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