Plan and Disclosure Statement
On April 12, 2007, the Debtors filed a master plan of reorganization and disclosure statement for all affiliates.
In short, the treatment of the unsecured creditors is as follows: (a) $500,000 in a down payment (to be distributed on a global, pro-rata basis) and $5,000 per home sold paid to the holders of claims in the individual affiliate estates in which the sales take place. The $5,000 payments, however, will only occur if there is "net" equity after repayment of all existing liens. There are no other sources of money for distribution to the unsecured creditors, except for avoidance actions and certain "designated" causes of action. The plan also provides for a release of claims against Zuhdi Karagjosi.
The Court has scheduled a hearing on the adequacy of the disclosure statement for May 24, 2007 at 10:00 am. All objections to the disclosure statement must be written and filed with the Clerk of the Bankruptcy Court and served on counsel to the Debtors, counsel to the Committee and the Office of the United States Trustee no later than ten (10) days prior to the hearing date, or May 14, 2007.
Copies of the Plan and Disclosure Statement are available online through PACER or by written request to Debtors' counsel.
In short, the treatment of the unsecured creditors is as follows: (a) $500,000 in a down payment (to be distributed on a global, pro-rata basis) and $5,000 per home sold paid to the holders of claims in the individual affiliate estates in which the sales take place. The $5,000 payments, however, will only occur if there is "net" equity after repayment of all existing liens. There are no other sources of money for distribution to the unsecured creditors, except for avoidance actions and certain "designated" causes of action. The plan also provides for a release of claims against Zuhdi Karagjosi.
The Court has scheduled a hearing on the adequacy of the disclosure statement for May 24, 2007 at 10:00 am. All objections to the disclosure statement must be written and filed with the Clerk of the Bankruptcy Court and served on counsel to the Debtors, counsel to the Committee and the Office of the United States Trustee no later than ten (10) days prior to the hearing date, or May 14, 2007.
Copies of the Plan and Disclosure Statement are available online through PACER or by written request to Debtors' counsel.
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