Sears Methodist creditor committee objects to disclosure statement

By Kali Hays

New York, Jan. 15 – Sears Methodist Retirement System, Inc.’s official committee of unsecured creditors objected to the disclosure statement related to Sears’ proposed plan of reorganization, according to a Jan. 15 filing with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company filed the plan and disclosure statement on Dec. 6 based on the sale of eight remaining subsidiaries and the establishment of a liquidating trust.

The committee did not specify its objections, but said that it has discussed the matter with the debtors and company representatives directly, according to the objection.

Sears said that the committee’s concerns would be incorporated into a revised disclosure statement and an amended plan.

If the committee does not receive a revised disclosure statement, it said it will raise its concerns during the disclosure statement hearing scheduled for Jan. 16.

Sears Methodist is a Dallas-based nonprofit senior living provider that filed for bankruptcy on June 10, 2014. The Chapter 11 case number is 14-32821.

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