The U.S. Trustee assigned to the Adeptus Health case filed with the U.S. Bankruptcy Court an objection to the Company’s Second Amended Joint Plan of Reorganization.
The Trustee asserts, “The Debtors have agreed to insert language into the Plan that excludes governmental entities and claims from release and exculpation provisions….The Plan contains non-consensual third party releases in contravention of 11 U.S.C. section 524(e) and Bank of N.Y. Trust Co. v. Official Unsecured Creditors’ Committee. The Plan contains exculpation provisions in contravention of 11 U.S.C. section 524(e) and Pacific Lumber.”
In addition, “The Debtors and the United States Trustee remain in active negotiations concerning the release and exculpation provisions and hope to reach an amicable resolution….The United States Trustee and the Debtors will continue their negotiations in an effort to reach an amicable resolution in advance of the hearing on confirmation.”
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