Kaiser Gypsum, Truck Insurance Exchange disclosures nixed

By Caroline Salls

Pittsburgh, Oct. 8 – Kaiser Gypsum Co., Inc. was denied approval of the disclosure statement for its third amended plan of reorganization, according to an order filed Monday with the U.S. Bankruptcy Court for the Western District of North Carolina.

The order also denied approval of the disclosure statement for the fifth amended competing plan filed by Truck Insurance Exchange.

Judge J. Craig Whitley said in Monday’s order that “both disclosure statements have disclosure deficiencies, but these are potentially remediable.”

“While the debtors’ third amended joint plan appears to have issues that may ultimately present obstacles to confirmation, it cannot be said to be ‘patently unconfirmable,’” the ruling said. “On the other hand, Truck Insurance Exchange’s fifth amended plan...is ‘patently unconfirmable’ in its present iteration and cannot proceed to solicitation and confirmation.”

The court said Kaiser Gypsum has amended its plan and disclosure statement, and a further hearing is scheduled for Oct. 17.

Kaiser Gypsum, an Irving, Tex.-based manufacturer of construction and remodeling materials, filed bankruptcy on Sept. 30, 2016. The Chapter 11 case number is 16-31602.

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