Aceto stockholder consortium objects to proposed disclosure statement

By Caroline Salls

Pittsburgh, July 18 – An informal consortium of Aceto Corp. equityholders objected to the approval of the disclosure statement for the company’s proposed amended plan of liquidation, according to a Thursday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The consortium said “the disclosure statement does not contain information that would enable a hypothetical investor typical of or similar to holders of Aceto common stock to make an informed decision about the plan.”

Specifically, the consortium said the disclosure statement does not provide any estimate of the Aceto debtors’ net distributable asset, the estimated allowed amount of claims, a preliminary distribution calculation, an estimated wind-down budget or a hypothetical liquidation analysis.

“The consortium strongly believes, based upon the information in the April [monthly operating report] and other public sources, that the debtors’ distributable assets are sufficient to satisfy all higher-priority classes of claims under the plan and, thus, holders of Aceto common stock stand to recover on their equity interests under the plan,” the objection said.

Since interest holders are the only plan class that would need to scrutinize aspects of the plan related to fees and potential causes of action, the consortium said “holders of Aceto common stock should have a voice and the ability to make an informed decision as to whether the debtors’ distributable assets are spent on prosecuting causes of action or satisfying the claims of debtors’ equity holders.”

The consortium said the stockholders cannot do this under the current version of the disclosure statement.

Aceto is a Port Washington, N.Y.-based developer, marketer, seller and distributor of human health products, pharmaceutical ingredients and performance chemicals. The company filed bankruptcy on Feb. 19 under Chapter 11 case number 19-13448.

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