AAC creditors committee objects to amended plan of reorganization

By Sarah Lizee

Olympia, Wash., Oct. 5 – AAC Holdings, Inc.’s official committee of unsecured creditors objected to confirmation of the company’s amended joint Chapter 11 plan of reorganization, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The committee said its concerns for the scope of proposed third-party and estate releases remain wholly unaddressed and unresolved.

The committee said that, while it supports the debtors’ reorganization efforts, the proposed estate releases remain “legally impermissible, unwarranted in view of the serious allegations of prepetition mismanagement and self-dealing made against the debtors’ current and former officers and directors, and fundamentally irrelevant to the debtors’ ability to emerge from Chapter 11.”

AAC provides inpatient substance abuse treatment services and is based in Brentwood, Tenn. The company filed bankruptcy on June 20 under Chapter 11 case number 20-11648.

© 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.