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GVS Texas disclosure statement draws objection from U.S. trustee
By Sarah Lizee
Olympia, Wash., Dec. 21 – GVS Texas Holdings I, LLC’s disclosure statement for its amended Chapter 11 plan of reorganization drew an objection Monday from Region 6 U.S. trustee William T. Neary, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas.
Neary said the statement should be denied because it omits information, including the debtors’ available assets and their value as well as the estimated return to creditors under a Chapter 7 liquidation.
He added that the plan is “patently unconfirmable,” because the debtor failed to provide notice of the bankruptcy to storage tenants who may have claims.
“Some tenants deposits are with the debtor; the status of others is unclear,” Neary said in his objection.
Neary also said that the statement and plan contain impermissible release and exculpation provisions.
The release provisions are opt-out releases and, as such, nonconsensual for those parties who are not solicited or who otherwise do not vote on the plan or return an opt out form because there is no meeting of the minds with regard to the releases, Neary said.
“No party should be released from any causes of action of proceedings brought by any governmental agencies in accordance with their regulatory functions,” the U.S. trustee added.
A hearing on approval of the disclosures statement is scheduled for Jan. 5.
GVS Texas is an indirect subsidiary of GVS Portfolio I B, LLC, which does business as Great Value Storage, an Austin, Tex.-based storage chain. GVS Texas Holdings I filed bankruptcy on June 17, 2021 under Chapter 11 case number 21-31121.
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