Aspen Specialty Insurance filed with the U.S. Bankruptcy Court an objection to Patriot National’s Disclosure Statement.
According to the objection, “The Disclosure Statement is glaringly deficient in that it does not even reference the Aspen Litigation or the claims alleged therein – which could potentially result in a judgment of tens of millions dollars against certain Debtor-Defendants…The Disclosure Statement fails to adequately describe how currently unliquidated, litigation-based claims such as Aspen’s will be quantified and treated, and the proposed Plan of Reorganization does not provide for adequate reserves for such claims.”
In addition, “The Disclosure Statement should not be approved because the proposed Plan of Reorganization it describes provides for impermissible releases of third parties, impermissible lien and super-priority claim on the Debtors’ avoidance actions in favor of DIP lenders, and other impermissible provisions, and is therefore unconfirmable as a matter of law.”
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