Hollister Construction amended plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., April 9 – Hollister Construction Services, LLC’s amended Chapter 11 plan of liquidation drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a Thursday filing with the U.S. Bankruptcy Court for the District of New Jersey.

Vara said the exculpation clause in the plan is too broad because it includes non-estate fiduciaries and extends to events occurring post-confirmation.

The U.S. trustee also said the plan should be revised to reflect that the debtor and the liquidation trust are both liable for the payment of statutory fees.

In addition, Vara said that Hollister Construction has failed to file its January and February monthly operating reports. “If reports are outstanding at the hearing, confirmation should be denied,” he said.

A combined hearing on approval of the disclosure statement and confirmation of the plan is scheduled for April 15.

Hollister is a Parsippany, N.J.-based construction company. The company filed bankruptcy on Sept. 11, 2019 under Chapter 11 case number 19-27439.

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