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Rooster Energy Bankruptcy Objection Filed

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United States Specialty Insurance Company (USSIC) filed with the U.S. Bankruptcy Court an objection to Rooster Energy’s Disclosure Statement for the Company’s Joint Chapter 11 Plan of Reorganization.

The objection asserts, “USSIC objects to the Rooster Disclosure Statement due to the fact it fails to provide ‘adequate information’ as required by 11 U.S.C. section 1125. The Rooster Disclosure Statement contains at least the following deficiencies: a. The Rooster Debtors fail to provide adequate information regarding the handling of the USSIC bonds by incorporating the concept of ‘USSIC Bonds New Agreements.’ USSIC continues discussion with counsel for Rooster and Morrison regarding the bonds and bond collateral issues, but, at this point, USSIC does not understand what the Rooster Debtors contemplate by this definition and plan provision. b. This deficiency is further significant because surety bonds are not executory contracts and cannot be transferred. In theory the Rooster Debtors seek to sidestep this problem through the ‘USSIC Bonds New Agreements,’ but the current disclosure is unclear on that point.”

In addition, “The Rooster Debtors provide for payment of administrative claims but give no disclosure as to the amounts of claims covered or any indication that they can satisfy those claims in full….The Rooster Debtors provide no disclosure regarding their decommissioning obligations and plan for addressing those liabilities….Moreover, the Rooster Debtors’ environmental claims could present substantial administrative claim burdens, and it is unclear how the Rooster Debtors can satisfy those claims.”

Read more Rooster Energy bankruptcy news.

The post Rooster Energy Bankruptcy Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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