Opinion
Case No. 13-54215
02-07-2014
In re: RYIADH JAMIL ASMAR and MAJIDA RYIADH ASMAR, et al., Debtors.
Chapter 11
Judge Thomas J. Tucker
(Jointly Administered)
ORDER REQUIRING DEBTORS TO AMEND DISCLOSURE STATEMENT
On January 29, 2014, the Debtors in these jointly-administered cases filed a plan and disclosure statement, in a document entitled "Debtors' Combined Plan of Reorganization and Disclosure Statement" (Docket # 145). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problems, which Debtors must correct.
First, Debtors must state the values of Debtors' interests in High County Estates Inc.; Hexagon Realty Investors, LLC; and the UBS Financial Services account, which are mentioned on page 15 of the Plan, and explain how such values impact the secured nature of Bank of Michigan's claim.
Second, Debtors must change "Real Property" in Paragraph E.11of the Plan on page 20 to "Residential Property."
Third, in Paragraph IV.C of the Disclosure Statement on page 34, Debtors must identify any potential claims and causes of action, including claims against insiders and avoidance actions, or if there are none, so state. For each such cause of action, Debtors must estimate the value of any expected recovery and the expected costs of such litigation. (The anticipated net value of any litigation that the Debtors intend to pursue should be included in the liquidation analysis.) If the Debtors do not intend to pursue any such claims, Debtors must state why not. Debtors must re-letter the other paragraphs of this section to account for the fact that there is now new information at Paragraph IV.C.
Accordingly,
IT IS ORDERED that no later than February 12, 2014, Debtors must file an amended combined plan and disclosure statement that is consistent with this Order.
IT IS FURTHER ORDERED that no later than February 12, 2014, Debtors also must file a redlined version of the amended combined plan and disclosure statement, showing the changes Debtors have made to "Debtors' Combined Plan of Reorganization and Disclosure Statement" filed January 29, 2014.
__________________________
Thomas J. Tucker
United States Bankruptcy Judge