Le Tote amended disclosure statement draws objection from trustee

By Sarah Lizee

Olympia, Wash., Jan. 4 – Le Tote, Inc.’s amended disclosure statement drew an objection Thursday from Region 4 U.S. trustee John P. Fitzgerald III, according to a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

“The disclosure statement fails to provide all the relevant information, financial and waterfall projections, and documents for creditors to decide whether to vote to accept or reject the plan and contemplates filing some crucial information and documents only five days before the voting and confirmation objection deadline,” he said in the objection.

Fitzgerald added that the solicitation procedures motion and amended plan should not provide that a failure by creditors in a class to cast any votes is deemed acceptance of the plan by the class.

He also said that the amended plan and amended disclosure statement propose a deemed substantive consolidation without meeting the standards imposed by case law.

And, the amended disclosure statement fails to explain the authority by which the debtors are attempting to close some of the affiliate cases before being fully administered, Fitzgerald stated.

New York-based Lord & Taylor, a unit of Le Tote, operates fashion stores in the United States. The company filed bankruptcy on Aug. 2 under Chapter 11 case number 20-33332.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.