Hello Living Developer disclosure statement lacks info, trustee says

By Sarah Lizee

Olympia, Wash., May 12 – Hello Living Developer Nostrand LLC’s disclosure statement for its Chapter 11 plan drew an objection Wednesday from Region 2 U.S. trustee William K. Harrington, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

The U.S. trustee said he objects to the conditional approval of the disclosure statement because it fails to provide creditors with sufficient information to allow them to make an informed decision as to whether to accept or reject the plan of reorganization.

“Specifically, the disclosure statement fails to provide sufficient information about the sole funding source of the plan, does not take into consideration a significant claim filed by the debtor’s indirect owner, contains confusing and inconsistent language in the release provision, and appears to impose non-consensual unjustifiable third-party releases,” Harrington said in the objection.

The apartment developer is based in Monsey, N.Y. The company filed Chapter 11 bankruptcy on Dec. 21 under case number 21-22696.

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