Toys “R” Us – U.S. Trustee Objects to the Adequacy of Wayne Disclosure Statement, Questions Appropriateness of Abbreviated Timetable

December 26, 2018 – The U.S. Trustee objected [Docket No. 6058] to the Debtors’ motion for Court approval of the adequacy of the Wayne Real Estate Parent Company, LLC (“Wayne”) Disclosure Statement [Docket No. 6055].

 

The objection states, “The failure to provide a creditor with formal notice in time to file an objection to the Disclosure Statement or plan confirmation may violate due process and render the plan ineffective as to such creditor….Wayne seeks to reduce the time for parties to object to the adequacy of the Disclosure Statement to a mere four days – without even taking into consideration that one of the days was a holiday. Moreover, Wayne further seeks to reduce the deadline for parties in interest to object to confirmation to 22 days – from the 28 days required under the Rules. Despite the emergency relief sought, Wayne has not advanced any plausible justification for shortening the notice requirements to object to the adequacy of the Disclosure Statement or the confirmation of the underlying Plan. Wayne, however, fails to explain how shortening the notice period will maximize value for all stakeholders….Accordingly, it is not entirely clear why Wayne waited over a month to file the current Disclosure Statement and underlying Plan in its case and now claims that the timelines should be synched with the ones approved in the Propco I case. Wayne further claims that the terms of the proposed plan are straightforward and similar to the plan proposed in Propco I and supported by the Ad Hoc Group of B-4 Lender, which may be one of the few creditors impacted by the Plan. While that may be true, that is simply not sufficient justification to deprive all other parties in interest of their rights to be allowed sufficient time to review the Disclosure Statement and plan and their full 28-day period to object to either the adequacy of the Disclosure Statement or plan confirmation. Lastly, there is no evidence how or why the stakeholders will be prejudiced if the parties are given the full 28 days as required by the Bankruptcy Rules to file objections to the Disclosure Statement or plan confirmation.”