Prime Trust’s Chapter 11 plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Dec. 12 – Prime Trust, LLC’s Chapter 11 plan drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The U.S. trustee said he objects to confirmation of the plan because it includes an exculpation provision that purports to cover non-fiduciary employees of the debtors, third-party non-estate fiduciaries and post-effective date entities.

Vara also said he objects to the recently proposed expansion of the debtor release to include released employees because the costs of these releases to the estates have not been quantified so that parties in interest may fully evaluate them.

The U.S. trustee said the reasons set forth for the releases do not pass muster under applicable law.

Also, the expansion represents a material change to the plan, and parties in interest should receive more than one week notice before the deadline to object, Vara said.

The plan confirmation hearing is slated for Dec. 19.

The Las Vegas-based cryptocurrency custodian filed bankruptcy on Aug. 14 under Chapter 11 case number 23-11161.

© 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.