Snow Covered Capital (“SCC”) filed with the U.S. Bankruptcy Court an objection to Lucky Dragon Hotel & Casino’s First Amended Disclosure Statement for its Chapter 11 Plan of Reorganization. SCC asserts, “There are three overarching issues with the Amended DS. First, Debtors have melded together, in an incoherent way, what are really two plans – one based on a sale that nets enough money to pay creditors in full and the other based on a sale that does not pay creditors in full. Rather than presenting a clear summary of the differences depending on the outcome of the sale, Debtors have confusingly included these provisions together throughout the Amended DS in a way that often requires cobbling together portions of sections or definitions, often many pages apart, in an attempt to understand what is being proposed. Second, the Amended DS proposes a sale with bidding procedures, but there are currently no deadlines under the bidding procedures. Debtors previously sought approval for bidding procedures, which the Court granted, but no order has ever been entered. Creditors cannot be held to dates that are not yet ordered and must be given sufficient time to react once the dates are set. Third, the Amended DS fails to provide information on any offers that Debtors are negotiating.”
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