Aegean Marine U.S. Trustee: disclosure statement lacks information

By Caroline Salls

Pittsburgh, Feb. 12 – The U.S. Trustee overseeing Aegean Marine Petroleum Network Inc.’s Chapter 11 case objected to the disclosure statement for the company’s proposed plan of reorganization, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Region 2 U.S. trustee William K. Harrington said in his objection that the disclosure statement “fails to contain adequate information on a number of material issues.”

Specifically, Harrington said while the plan contains broad non-debtor third-party releases and an exculpation provision, the disclosure statement does not provide enough information explaining to interested creditors and interest holders exactly what releases are being imposed upon each creditor and the legal basis for the company’s belief that it is likely that the plan will be confirmed with these provisions.

The U.S. Trustee said the disclosure statement also does not give enough information about the impact of releases on non-voting creditor classes, why impaired classes are not entitled to an “opt-in” procedure for granting releases and the legal basis for payment of creditors committee and individual member counsel fees and expenses.

The disclosure statement hearing is scheduled for Feb. 14.

Aegean, a marine fuel logistics company based in Piraeus, Greece, filed bankruptcy on Nov. 6. The Chapter 11 case number is 18-13374.

© 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.