GB Holdings objects to committee disclosure statement, wants stock value cut from noteholder claims

By Caroline Salls

Pittsburgh, May 23 - GB Holdings, Inc. objected to approval of the disclosure statement for the plan of liquidation proposed by its official committee of unsecured creditors, saying the plan favors noteholder claimants, according to a Monday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The company said the committee's plan should be modified to determine and deduct the value of the common stock of Atlantic Coast Entertainment Holdings, Inc., GB's primary asset, from noteholders' claims to make the plan "fair and equitable."

According to the objection, the plan "imposes no duty whatsoever to maximize the estate assets."

"Instead, the Atlantic stock is held hostage in a liquidating trust, regardless of the impact on the value of this asset, while the committee, through the liquidation trust board, pursues its litigation strategy," the company said in the objection.

GB said the committee is attempting to administer estate assets in full satisfaction of noteholder interests, without any consideration for the company's estate.

GB Holdings has no operating activities. It filed for bankruptcy on Sept. 29, 2005. Its Chapter 11 case number is 05-42736.

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