Knotel and committee’s plan lacks information, U.S. trustee says

By Sarah Lizee

Olympia, Wash., May 10 – Knotel, Inc. and its official committee of unsecured creditors’ Chapter 11 plan of liquidation and related disclosure statement drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Vara said that for the disclosure statement to be approved, it must include sufficient information to apprise creditors of the risks and financial consequences of the proposed plan.

The U.S. trustee said that the disclosure statement is missing the liquidation analysis, which is a key exhibit.

“The information to be provided in the liquidation analysis is necessary for creditors in voting classes to properly evaluate whether to vote to accept or reject the plan, and for creditors in non-voting classes to determine whether to object to confirmation of the plan,” Vara said.

“Without the liquidation analysis, the disclosure statement does not contain adequate information, and therefore cannot be preliminarily approved.”

New York-based Knotel operates a flexible workspace platform that matches, tailors and manages space for customers. The company filed bankruptcy on Jan. 31 under Chapter 11 case number 21-10146.

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