Ciber’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ Disclosure Statement.
The committee asserts, “The Disclosure Statement fails to contain ‘adequate information’ as that term is defined in 11 U.S.C. section 1125. It also includes a number of materially misleading statements. Specifically, certain key information is either omitted, inadequately disclosed, or disclosed in a misleading fashion.”
In addition, “All of the following categories of information are either non-existent, inadequate, and/or materially misleading: The Liquidation Analysis; The proposed role of the Debtors’ Chief Financial Officer and the terms thereof; The analysis of potential avoidance actions, including actions that could be asserted against the insiders proposed to be released under the Plan; The treatment, cost and effect of the proposed assumption of indemnity obligations to insiders; The financial impact of the proposed release of all claims against the Debtors’ insiders; The terms of the Debtors’ sale of foreign operations and wind down of foreign affiliates; The initial amount of the proposed reserves for various creditor groups; The discussion of a potential non-consensual confirmation.”
The objection continues, “Additionally, the Disclosure Statement must disclose whether the Debtors would have any indemnity obligation under the Plan to Dennis Miller, a defendant in litigation with the Pennsylvania Turnpike Commission and described as a Ciber employee. The Commission asserts a claim in excess of $45 million, and Mr. Miller is a defendant and alleged to be the Ciber executive involved in the actions at the center of the dispute.” The committee also filed a separate objection to the Company’s motion for an exclusivity extension.
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