Maria Corso, a judgment creditor of Debtor Rejuvi Laboratory Inc., objects to Rejuvi’s Combined Plan of Reorganization and tentatively approved Disclosure Statement filed by the Debtor on March 3, 2020.
Corso asserts that:
* The Debtor must provide evidence that there is a valid business and economic justification for the separate classification of general unsecured creditors because each of Class 2(a) and Class 2(c) creditors have separate and distinct rights of recovery against the Debtor, and non-debtor third parties, that the Class 2(b) creditor does not have.
* Ms. Corso believes it will be impossible for Rejuvi to justify the attempted discriminatory treatment of her claim given both the Debtor’s current economic position and historical performance.
* The Debtor has maintained an average of approximately $578,000 in its bank accounts postpetition; however, rather than paying creditors in certain classes on the Effective Date, it proposes a plan that pays these creditors 30 to 90 days from the Effective Date.
* The Plan unfairly discriminates against Ms. Corso because it more favorably treats insider Wei Cheng’s general unsecured claim of $80,000 in Class 2(c) by allowing it to be paid within two years from the Effective Date, while stretching out payment to Ms. Corso over at least 12 years.
A full-text copy of Maria Corso’s objection to the Combined Plan and Disclosure Statement dated April 17, 2020, is available at https://tinyurl.com/yb9pmmgk from PacerMonitor at no charge.
About Rejuvi Laboratory
Founded in 1988 by Dr. Wade Cheng, Rejuvi Laboratory, Inc. is an integrated cosmetic laboratory with ongoing research, development and production capability.
Rejuvi Laboratory sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 18-31069) on Sept. 27, 2018. In the petition signed by Wei Cheng, president, the Debtor disclosed $2,870,211 in assets and $1,357,213 in liabilities. Judge Dennis Montali presides over the case.
Attorneys for the Debtor:
Stephen D. Finestone
Jennifer C. Hayes
FINESTONE HAYES LLP
456 Montgomery Street, 20th Floor
San Francisco, California 94104
Tel: (415) 421-2624
Fax: (415) 398-2820