Filed: Mar. 10, 2017
Latest Update: Mar. 10, 2017
Summary: ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT THOMAS J. TUCKER , Bankruptcy Judge . On March 8, 2017, the Debtor filed a plan and disclosure statement, in a document entitled "Debtor's Amended Combined Plan of Reorganization and Disclosure Statement" (Docket # 39). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problem, which Debtor must correct. In Article II, Paragra
Summary: ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT THOMAS J. TUCKER , Bankruptcy Judge . On March 8, 2017, the Debtor filed a plan and disclosure statement, in a document entitled "Debtor's Amended Combined Plan of Reorganization and Disclosure Statement" (Docket # 39). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problem, which Debtor must correct. In Article II, Paragrap..
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ORDER REQUIRING DEBTOR TO AMEND DISCLOSURE STATEMENT
THOMAS J. TUCKER, Bankruptcy Judge.
On March 8, 2017, the Debtor filed a plan and disclosure statement, in a document entitled "Debtor's Amended Combined Plan of Reorganization and Disclosure Statement" (Docket # 39). The Court cannot yet grant preliminary approval of the disclosure statement contained within this document ("Disclosure Statement"). The Court notes the following problem, which Debtor must correct.
In Article II, Paragraph 2.1.1 of the Plan on page 9, and on page 30 of the Disclosure Statement, Debtor states, in relevant part:
Administrative claims of Professionals and other parties are current through the filing of the Plan and have been paid by non-debtor parties as set forth in the Debtor's Application to Employ the Dragich Law Firm PLLC as Bankruptcy Counsel Pursuant to 11 U.S.C. §§ 327(a), 328(a), 329 & 1007, Rules 2014(a) & 2016(b) of the Federal Rules of Bankruptcy Procedure and Local Bankruptcy Rule 2014-1 (Dated: September 6, 2016) [Docket No. 13] that was approved by the Bankruptcy Court. To the extent Professionals have been paid, all such fees and expenses are subject to the filing and approval of final fee applications by the Bankruptcy Court. At the time of filing this Plan, the Debtor believes the professional fees will total approximately $50,000.
(Emphasis added). Contrary to the bolded statement, "Debtor's Application to Employ the Dragich Law Firm PLLC as Bankruptcy Counsel" (Docket # 13, the "Employment Application") does not say anything about the payment of professional fees and expenses before such fees and expenses have been approved by this Court. Nor does the Court's order granting the Employment Application (Docket # 20), or any other order of this Court, authorize this. Debtor must delete the inaccurate parts of the statement quoted above. Debtor also must state whether the Debtor's professionals have been paid anything to date, other than the $4,217.00 retainer disclosed in ¶ 14 of the Employment Application, and if so, the date(s), amount(s), and source(s) of such payments.
Accordingly,
IT IS ORDERED that no later than March 14, 2017, Debtor must file an amended combined plan and disclosure statement that is consistent with this Order.
IT IS FURTHER ORDERED that no later than March 14, 2017, Debtor also must file a redlined version of the amended combined plan and disclosure statement, showing the changes Debtor has made to "Debtor's Amended Combined Plan of Reorganization and Disclosure Statement" filed March 8, 2017.
