Money Tree granted a 30-day delay for its disclosure statement hearing

By Jim Witters

Wilmington, Del., May 18 - Money Tree Inc. was granted a 30-day postponement of the hearing for approval of its disclosure statement, according to documents filed on May 17 with the U.S. Bankruptcy Court for the Middle District of Alabama.

The hearing had been scheduled for May 21.

As previously reported, the company filed its plan on April 16.

In seeking the postponement and an extension of its exclusive periods for filing a Chapter 11 plan and soliciting plan acceptances, Money Tree stated that it needs more time to find a replacement investor now that a plan that will generate a substantial return to creditors is on file.

The company said it has decided to hire a chief restructuring officer to turn the company around and find an investor. As a result, Money Tree said it expects a new investor to be found "in a timely fashion."

According to the motion, the company has agreed that its exclusivity be terminated if no investor has been found by June 13 or if Money Tree has not filed an amended disclosure statement to identify a replacement investor by that date.

The court has not ruled on the request for extending the exclusive periods.

Money Tree, a Bainbridge, Ga., consumer loan company, filed for bankruptcy on Dec. 16. The Chapter 11 case number is 11-12254.

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