United States of America, acting on behalf of its Internal Revenue Service (IRS) and Environmental Protection Agency (EPA), filed with the U.S. Bankruptcy Court an objection to GenOn Energy’s motion for entry of an order approving omnibus claims objection procedures and the filing of substantive omnibus claims objections.
The United States of America asserts, “The claim resolution procedures proposed by the Debtors unnecessarily shorten response times, increase the burden on claimants responding to objections, and potentially constrain a creditor’s ability to take discovery. The procedures do not make the process more efficient – they stack the deck….The Debtors are proposing to pay all General Unsecured Claims in full, but their Plan requires that disputes concerning General Unsecured Claims are litigated before this Court.”
In addition, “The United States believes that many environmental-related liabilities would actually be compliance obligations – not Claims – and therefore its proofs of claims would be only protective in nature. However, the proofs of claims may be necessary to protect the United States in the event that the Debtors later contend that non-dischargeable environmental obligations are dischargeable Claims under the Bankruptcy Code. The United States objects to the procedures proposed by the Debtors. The United States is not opposed to the entry of procedures which create an efficient process for parties to fairly litigate their disputes, but the United States does oppose procedures which arbitrarily increase the burden on creditors in responding to objections. The United States anticipates that it and possibly other Governmental Units may file contingent and/or unliquidated proofs of claim, and some of the procedures will make it very difficult – if not impossible – for Governmental Units to fairly litigate those claims.”
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