Le Tote Chapter 11 plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., March 9 – Le Tote, Inc.’s second amended Chapter 11 plan drew an objection from Region 4 U.S. trustee John P. Fitzgerald, III, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Fitzgerald said the plan in its current form can’t be confirmed because the assumption of insider benefit programs violates section 1129(a)(1) of the Bankruptcy Code.

Also, the proposed third-party releases and exculpation clauses are overly broad, and the deemed acceptance voting provision is inappropriate, the U.S. trustee said.

Fitzgerald said the court should either deny the plan or strike the offending provisions from the plan.

The confirmation hearing is scheduled for March 18.

New York-based Lord & Taylor, a unit of Le Tote, operates fashion stores in the United States. The company filed bankruptcy on Aug. 2, 2020 under Chapter 11 case number 20-33332.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.