GVS Texas Holdings Chapter 11 plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., March 7 – GVS Texas Holdings I, LLC’s Chapter 11 plan of reorganization drew an objection 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 he objects to the plan because its third-party release provisions are “opt-out” releases and nonconsensual for those parties who do not return ballots opting out because there is no meeting of the minds with regard to the release.

He also said the plan fails to clarify whether claims of governmental agencies are released.

The U.S. trustee added that the plan’s exculpation and release provisions for professionals are impermissible under Fifth Circuit authority and professional ethical obligations, and its third-party exculpation provisions violate Fifth Circuit authority.

He also said the company hasn’t filed a monthly operating report for January.

The plan confirmation hearing is scheduled for March 16.

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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