Alto Maipo’s Chapter 11 plan draws objection from U.S. trustee Vara

Chicago, May 5 – Alto Maipo Delaware LLC’s Chapter 11 plan has had an objection to confirmation from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Many of the objections were similar to Vara’s objections to the disclosure statement.

The trustee states that the plan imposes non-consensual third-party releases on at least 32 categories of persons and entities merely because they are related in some fashion to the creditors who voted to accept the plan, or to other parties who have consented to give third-party releases in favor of non-debtors.

The related parties have not only not consented to give releases, they likely do not even know that the plan would extinguish their direct claims against non-debtors.

Further, Vara objects to confirmation of the plan provisions based on the plan impermissibly seeks to treat the entire plan, and all distributions thereunder, as a “settlement” of the claims of all creditors and the interests of all equity holders.

The exculpation provision of the plan inappropriately includes findings of fact.

The trustee requests an order denying confirmation of the plan.

The Santiago, Chile-based renewable energy company filed bankruptcy on Nov. 17 under Chapter 11 case number 21-11507.

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