Mercon Coffee’s disclosure statement lacks information, trustee says

By Sarah Lizee

Olympia, Wash., May 10 – Mercon Coffee Corp.’s disclosure statement for its Chapter 11 plan of liquidation drew an objection from Region 2 U.S. trustee William K. Harrington, according to documents filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Harrington said the disclosure statement does not give creditors enough information to allow them to make an informed choice as to accept or reject the plan.

“Accurate schedules of assets and liabilities are not available to creditors and other parties in interest,” Harrington said in the objection.

“Moreover, the debtors have not filed monthly operating reports for any month in 2024.”

He also called the plan itself “patently unconfirmable,” saying it imposes third-party releases on parties who have not affirmatively and unambiguously demonstrated their consent to grant those releases.

The U.S. trustee also said the plan’s exculpation provision is overly broad, and the debtors are giving valuable releases to numerous parties without setting forth the consideration that the debtors have received in exchange for the releases.

Based in the Netherlands, Mercon is a vertically integrated global green coffee supplier. It filed bankruptcy on Dec. 6, 2023 under Chapter 11 case number 23-11945.

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