Renovate America receives short extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., June 10 – Renovate America, Inc. received an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the court extended the plan filing period through June 28 and the solicitation period through Aug. 27.

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

However, following an objection from the official committee of unsecured creditors, the company amended its request and asked to instead extend each plan period by 69 days, rather 120 days.

As previously reported, the committee said in its objection 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.

“Rather than allow the debtors additional time to complete negotiations and finalize its liquidating plan, it seeks to disengage and unilaterally file a plan without buy in from other significant and vocal constituents in these cases,” the company said in response.

“This runs counter to the purpose of exclusivity, which is to promote an environment in which a consensual plan may be negotiated.”

The debtors said that in view of the progress made so far, they are confident that they can complete their pending negotiations and file a largely consensual liquidating plan in the next few weeks.

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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