Renovate America committee says it’s prepared to file its own plan

By Sarah Lizee

Olympia, Wash., May 3 – Renovate America, Inc.’s official committee of unsecured creditors objected to the company’s motion seeking a 120-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company asked the court to extend the plan filing period through Aug. 18 and the solicitation period through Oct. 18, as previously reported.

The debtors have sold substantially all of their assets, and by the end of this week, they will have fulfilled their services under a transition services agreement with the purchaser.

The only remaining issue in these cases is effectively to review, administer and liquidate claims against the estates, the committee said.

“The relatively scant remaining assets constitute the ‘creditors’ money,’” the committee said. “Thus, allowing the debtors the continued exclusive right to file a plan is simply inappropriate.”

The group said that given the limited asset pool, debt structure and continued administrative burn, there is only a very narrow window to confirm a feasible plan.

“From the committee’s perspective, an extension of exclusivity will only create a barrier to and delay filing of such a plan,” the group said.

The committee added that it is prepared to file its own liquidating plan in the very near term.

“Every day a plan is not filed, solicited and confirmed is money out the door that could be used as a dividend to the debtors’ creditors,” the group said.

“Therefore, a plan needs to be on file in the very near term or these cases should convert to Chapter 7.”

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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