Renovate America eyes exclusivity extension to continue negotiations

By Sarah Lizee

Olympia, Wash., April 20 – Renovate America, Inc. is seeking a 120-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the plan filing period through Aug. 18 and the solicitation period through Oct. 18.

The company said that prior to closing the sale transaction with Finance of America Mortgage LLC and during the transition period that will follow, the debtors must work to resolve a number of final issues that will inform the details of their plan structure such as the liquidation of assets and the passage of the claims bar date, which will inform the costs relating to notice of the solicitation materials.

With the closing of the sale completed, the debtors and their advisers are closely working with the official committee of unsecured creditors and their other stakeholders to negotiate and outline the material terms and timeline of a Chapter 11 plan of liquidation.

“The debtors’ ability to continue moving their plan process forward, as well as to obtain consensus from key parties with respect to same, would be seriously disrupted if another party were permitted to file a plan,” the company said in its motion.

“Moreover, the administrative costs associated with negotiating and soliciting approval of two or more competing plans in these cases would materially erode potential recoveries to unsecured creditors and the debtors’ other stakeholders.”

A hearing is scheduled for May 21.

Renovate America is a San Diego-based provider of financing solutions for environmentally friendly home improvement projects. The company filed bankruptcy on Dec. 21 under Chapter 11 case number 20-13172.

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