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ANDES INDUSTRIES: Plan Unconfirmable, Petitioning Creditors Say

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EZconn Corporation, eGTran Corporation, Cheng-Sun Lan, Devon Investment, Inc., and Crestwood Capital Corporation (the “Petitioning Creditors”), filed their objection to the Joint Disclosure Statement Relating to the Joint Plan of Reorganization filed by Andes Industries, Inc. and PCT International, Inc.

The Petitioning Creditors point out that the Disclosure Statement does not provide adequate information.

The Petitioning Creditors assert that the Disclosure Statement does not adequately describe the funding sources for the Plan.

The Petitioning Creditors complain that the Disclosure Statement fails to discuss the Debtors’ valuation methods.

According to the Petitioning Creditors, the Disclosure Statement fails to identify the source of the information.

The Petitioning Creditors point out that the Disclosure Statement fails to provide adequate information relating to the liquidation analysis.

The Petitioning Creditors assert that the Disclosure Statement fails to provide amount of the administrative claims and professional fees.

The Petitioning Creditors complain that the Disclosure Statement fails to provide any information relating to the ability of Mr. Youtsey and Ms. Chaio’s to purchase Andes’ Stock.

According to the Petitioning Creditors, the Disclosure Statement presents a patently unconfirmable plan.

The Petitioning Creditors point out that the Newco cannot purchase the equity interests in Andes.

The Petitioning Creditors assert that the Plan results in improper substantive consolidation.

The Petitioning Creditors complain that the Plan is not feasible.

According to the Petitioning Creditors, the Plan was not proposed in good faith.

The Petitioning Creditors point out that the debtor does not disclose Post-Confirmation Management Pursuant to Sec. 1129(a)(5).

The Petitioning Creditors assert that the plan violates the Absolute Priority Rule.

Attorneys for Petitioning Creditors EZconn Corporation, eGTran Corporation, Cheng-Sun Lan, Crestwood Capital Corporation, and Devon Investment, Inc.:

Christopher H. Bayley
Benjamin W. Reeves
SNELL & WILMER L.L.P.
One Arizona Center
400 E. Van Buren, Suite 1900
Phoenix, Arizona 85004-2202
Telephone: 602.382.6000
E-mail: cbayley@swlaw.com
breeves@swlaw.com

– and –

Greer N. Shaw
HAGENS BERMAN SOBOL SHAPIRO LLP
301 N. Lake Ave., Suite 920
Pasadena, California 91101
Telephone: 213-330-7145
Email: greers@hbsslaw.com

About Andes Industries and PCT International

Creditors EZconn Corporation, Crestwood Capital Corporation, and Devon Investment Inc. filed involuntary bankruptcy petitions against Andes Industries, Inc., and PCT International, Inc., under Chapter 7 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Arizona.

On Dec. 4, 2019, the Chapter 7 cases were converted to cases under Chapter 11 (Bankr. D. Ariz. Lead Case No. 19-14585).

Judge Paul Sala oversees the cases.

Sacks Tierney P.A. is the Debtors’ legal counsel.

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