Reid Park Properties' disclosure statement approval denied by court

By Jim Witters

Wilmington, Del., Oct. 5 - Reid Park Properties LLC's disclosure statement was rejected for failing to address terms required by the court in August, according to documents filed on Tuesday in the U.S. Bankruptcy Court for the District of Arizona.

In denying approval of the disclosure statement, judge Eileen W. Hollowell wrote that no information is provided about the source and terms of a $1.7 million "new money" infusion. And the amended disclosure statement failed to disclose the status of a licensing agreement with Hilton Hotels.

Hollowell also wrote that the debtor added numerous provisions that the creditors are entitled to review before the amended disclosure statement can be approved.

The debtors' exclusivity period to propose a plan and solicit plan acceptances was extended "to the conclusion of any confirmation hearing on the third amended disclosure statement, provided that the debtor files it and the plan of reorganization within 30 days of the date of this order," the judge wrote.

Reid Park was formed in 2007 to hold title to the Tucson Doubletree Hotel. Its Chapter 11 case number is 11-15267.

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