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Revel AC creditor ACR Energy Partners objects to ‘unconfirmable’ plan
By Kali Hays
New York, May 1 – Revel AC Inc. unsecured creditor ACR Energy Partners, LLC objected to the company’s amended plan of reorganization on Thursday, according to a filing with the U.S. Bankruptcy Court for the District of New Jersey.
ACR called the proposed plan “patently unconfirmable” and said that “remarkably, the disclosure statement makes no mention whatsoever of the most significant aspect of these cases: ACR Energy’s accrued but unpaid $20 million plus administrative expense request.”
“Not only does the disclosure statement not mention the administrative expense claims, it also fails to mention the administrative expenses over and above an inadequate wind-down budget and other asserted but not budgeted administrative claims, even though the debtors have known about these for some time and concede they cannot pay,” the objection stated.
ACR went on to say that approval of Revel’s plan will allow the company to “ignore the Bankruptcy Code, ignore the facts and ignore reality.”
“In their hubris, [the debtors] continue to refuse to negotiate with their creditors, choosing instead scorched earth litigation by filing the proverbial on-the-eve of confirmation omnibus objection to administrative expenses.”
The creditor asked that the court deny the plan “unless and until the debtors know the amount of the allowed administrative expenses in these cases and can show that they will have the cash on hand to pay or reserve for them in full.”
A hearing to consider Revel’s disclosure statement is scheduled for May 4.
Revel, an Atlantic City, N.J.-based gaming and entertainment company, filed for bankruptcy on June 19, 2014. The Chapter 11 case number is 14-22654.
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