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Ultimate Escapes disclosure statement approved, exclusivity extended
By Jim Witters
Wilmington, Del., Aug. 24 - Ultimate Escapes Holdings LLP reached a settlement with the official committee of unsecured creditors and a lender on Wednesday, clearing the way for approval of its amended disclosure statement and a third extension of the exclusive period for filing a Chapter 11 plan.
Chris Ward, representing the creditors committee, said creditor CapitalSource Finance LLC, CapitalSource Bahamas LLC and CapitalSource Bank agreed to push down its claim to allow payment of $150,000 to the litigation trustee and $500,000 to the Chapter 11 professionals.
Michael Richmond, CapitalSource attorney, said his client reduced its priority claim to $1.25 million from $2.3 million. The remainder of the claim will become a deficiency claim and will be paid on a pro rata basis with the other unsecured claims.
Debtors attorney Sandra G.M. Selzer said the debtors also agreed to insert language into the disclosure statement spelling out contemplated actions against the directors and officers, delineating adversary actions, providing analysis of priority claims, agreeing to the right of the committee to select the liquidation trustee, and including the committee in the exculpation.
Judge Brendan Shannon, of the U.S. Bankruptcy Court for the District of Delaware, said it appeared the case is "edging toward pro bono" status for the lawyer involved, and he said the court is disposed toward an expedited and "painless" confirmation of the liquidation plan.
The exclusive period for filing a plan was extended 91 days to Oct. 17. The exclusive period for soliciting acceptances was extended 90 days to Dec. 14.
The plan confirmation hearing is scheduled for 10 a.m. ET on Nov. 1.
Ultimate Escapes, a Kissimmee, Fla.-based destination club operator, filed for bankruptcy on Sept. 20, 2010. The Chapter 11 case number is 10-12915.
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