Daniel M. McDermott, United States Trustee, objects to the Combined Plan and Disclosure Statement of debtor Motif Diamond Designs, Inc., and states as follows:
* A plan must provide adequate means for the plan’s implementation.
* The Debtor does not provide sufficient information on how it will fund the Plan.
* It is also unclear, based on the Debtor’s operations throughout this case, how it estimates it will be able to pay 15% to its unsecured creditors.
* The Plan notes that the Debtor plans to reject its mall lease and move to a new, more profitable location outside the mall. However, the Plan includes no specifics as to the alternate location, the timing of the move, moving costs, rent cost, and the basis that an alternate location would be more profitable.
* Absent additional information, the Plan cannot be confirmed because the information provided is inadequate as to how the Plan will be funded.
* Finally, because the Plan is vague, the feasibility of the Plan cannot be assessed.
A full-text copy of the U.S. Trustee’s objection to combined plan and disclosure dated July 17, 2020, is available at https://tinyurl.com/ybdgu7ul from PacerMonitor.com at no charge.
About Motif Diamond Designs
Motif Diamond Designs, Inc. is a jewelry store based in Taylor, Michigan. The Company filed a Chapter 11 petition (Bankr. E.D. Mich. Case No. 20-40285) on Jan. 8, 2020. The petition was signed by Toros Chopjian, its vice president. At the time of the filing, the Debtor was estimated to have assets of up to $50,000 and liabilities of $1 million to $10 million.
Judge Phillip J. Shefferly oversees the case.
The Debtor hired Yuliy Osipov, Esq. at Osipov Bigelman, P.C., as its bankruptcy counsel and Al-Hassan, Howell, Sadaps CPA & Associates, P.C., as its accountants.