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LandSource creditors committee asks court to postpone statement hearing
By Caroline Salls
Pittsburgh, April 7 - LandSource Communities Development, LLC's official committee of unsecured creditors has asked the U.S. Bankruptcy Court for the District of Delaware to postpone the hearing on approval of a disclosure statement filed by administrative agent Barclays Bank plc, according to a Tuesday court filing.
The hearing is currently scheduled for April 17.
According to the motion, after lengthy negotiations that followed contested financing hearings early in the company's bankruptcy case, the lender agent and the committee reached an agreement regarding the treatment of general unsecured creditors under any proposed plan.
However, rather than proposing a straightforward plan that includes that agreement, the committee said the agent has filed a second amended plan that allocates the value of the unencumbered assets in LandSource's bankruptcy case to the secured lenders.
As a result, the committee said the proposed plan is "unconfirmable on its face."
In addition, the committee said the disclosure statement does not contain "even the most fundamental financial information" and "creditors should not be required to spend any time or resources preparing objections."
"The agent has basically filed a draft disclosure statement as a placeholder," the committee said in the motion.
"This type of arrogant and presumptive behavior on the part of the agent and the lenders should not be tolerated.
"The court should take the disclosure statement hearing off calendar and require that the agent reschedule the hearing when it is finished with its financial analysis and has a complete document that is ready for the court and other parties in interest to review."
LandSource, a Los Angeles-based developer of master-planned communities, filed for bankruptcy on June 9, 2008. It Chapter 11 case number is 08-11111.
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