Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Novation Companies Bankruptcy Objections Filed

0
0

Multiple parties – including the U.S. Trustee assigned to the Novation Companies case, Taberna Preferred Funding I, Taberna Preferred Funding II and the unsecured creditors’ committee – filed with the U.S. Bankruptcy Court separate objections to Novation Companies’ Disclosure Statement.

The Trustee asserts, “In the Disclosure Statement, Novation explains it was previously a mortgage originator and servicer but that it stopped those operations in 2007 or 2008. Now it is ‘engaged in the business of acquiring various businesses.’ However, Novation does not identify any of the businesses it currently owns or how these businesses translate into revenue or otherwise support the revenue projections made in the Disclosure Statement.”

In addition, “All that can be gleaned from the Disclosure Statement regarding Novation’s current operations is that (1) as part of the Plan, Novation will be acquiring Healthcare Staffing from Butler America, (2) Novation recently sold a company called Corvisa, and (3) as part of the Corvisa sale Novation recently received $1 Million…. In order to provide adequate information, Novation needs to provide significantly more information regarding its current operations and the basis for its future income projections….Classes 4a and 4b consist of claims based on pending litigation against Novation. Without explanation, Novation indicates it believes the various plaintiffs’ chances of recovery are low and, therefore, it estimates all these claims at $0. This is not sufficient.”

Read more bankruptcy news.

The post Novation Companies Bankruptcy Objections Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images