Amerco creditor Citibank objects to disclosure statement, saying lacks adequate information

By Carlise Newman

Chicago, Nov. 3 -Citibank has objected to Amerco's request for bankruptcy court approval of its disclosure statement, saying it does not provide adequate information on a variety of topics.

Citibank said Amerco does not disclose a basis for failure to provide fair treatment of Citibank claimholders' guaranty claims. The bank also said the company fails to disclose a basis for exclusion of default rate interest from Citibank claims.

Amerco also fails to provide financial projections, Citibank said, and does not disclose a basis for non-company releases and injunctions.

Ultimately, the disclosure statement should not be approved because the reorganization plan is uncomfirmable, the bank said, due to its failure to provide treatment for the Citibank guaranty claims. The plan provides "substantial" cash payments to every class of creditors, including Amerco creditors other than the Citibank claim holders under the Amerco guaranty, and reinstates shareholders, yet provides no cash for the Citibank creditors as secured creditors of the Amerco Real Estate Co.

That treatment is "unfair," Citibank said, also due to the fact that the plan provides a cash payment of 20% to other Amerco unsecured creditors. The plan also includes several provisions designed "specifically to discriminate unfairly against the Citibank claim holders" and therefore violates the good faith requirement of the bankruptcy code, Citibank said.

Citibank also said that the plan's over-broad release provisions violate the bankruptcy code.

Las Vegas-based Amerco is the parent company of U-Haul. The Chapter 11 case is in the United States Bankruptcy Court for the District of Nevada.

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