Feds, Trustee Say Southern Air's Plan Disclosure Lacks Info

Law360, Wilmington (November 27, 2012, 9:52 PM EST) -- The federal government and the U.S. trustee took issue with Southern Air Holdings Inc.'s proposed Chapter 11 disclosure statement Tuesday, saying it fails to provide adequate information on the airline's reorganization plan, which appears to force creditors into granting “voluntary” releases.

In separate objections filed in Delaware bankruptcy court, U.S. Attorney Charles Oberly III and U.S. Trustee Roberta A. DeAngelis said Southern Air's disclosure statement does not allow creditors to make an informed judgment on its Chapter 11 plan as it fails to explain key provisions...
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