Creditors Flay Latest Meruelo Disclosure Statement

Law360, New York (May 18, 2010, 7:31 PM EDT) -- Meruelo Maddux Properties Inc.’s latest Chapter 11 plan has drawn blistering criticism from lenders, unsecured creditors and shareholders claiming the bankrupt real estate developer continues to push an opaque, speculative and futile blueprint for reorganization.

Citing an array of deficiencies, numerous stakeholders, including the official committee of unsecured creditors, secured lenders and shareholders, filed objections Monday to Meruelo’s second amended disclosure statement in the U.S. Bankruptcy Court for the Central District of California.

The creditors urged Judge Kathleen Thompson to reject the most recent disclosure statement...
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