Andrew R. Vara, the United States Trustee for Regions 3 and 9 objects to the Fourth Modified Plan of Reorganization of American Center for Civil Justice, Inc.
In support of the Objection, the United States Trustee states:
* The Debtors are seeking certain third-party releases in various sections of the Plan. It appears that the third-party releases may be nonconsensual third-party releases.
* The Debtor has not established that the third-party releases are necessary to the success of the Debtor’s reorganization, fair to the enjoined parties or given for reasonable consideration.
* As the Debtor’s officers, directors, members, attorneys and advisors are receiving an exculpation, they should be removed from the third party releases set forth in sections IVA(3)(a)(1), (2) and (3), IVF, IVG and IVI of the Plan.
* The discharge provision is overbroad as it requires the dismissal of litigation against the Non-Debtor Parties and discharges certain affiliates of the Debtor.
A full-text copy of the United States Trustee’s objection to disclosure statement dated July 28, 2020, is available at https://tinyurl.com/y4eckt4t from PacerMonitor at no charge.
About American Center for Civil Justice
American Center for Civil Justice, Inc., is a tax-exempt organization that provides legal services. The organization defends human and civil rights by advocating and aiding lawsuits by victims of oppression, acts of violence and other injustices.
American Center for Civil Justice filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Lead Case No. 18-15691) on March 23, 2018. In the petition signed by Elie Perr, president, the company was estimated to have $10 million to $50 million in assets and liabilities. The Honorable Christine M. Gravelle oversees the case. Timothy P. Neumann, Esq., of Broege, Neumann, Fischer & Shaver LLC, is the Debtors’ counsel.