US Trustee Blasts 'Broad' Releases In Tuscany's Ch. 11 Plan
By Matt Chiappardi
Law360, Wilmington (May 15, 2014, 3:06 PM ET) -- The U.S. trustee’s office took exception late Wednesday to Tuscany International Drilling Inc.'s Chapter 11 plan, arguing that it can’t be confirmed with its “overly broad” releases and that a plan supplement doesn’t include enough information about the consortium proposed to buy the debtor’s assets.
In a motion before the Delaware bankruptcy court, U.S. Trustee Roberta A. DeAngelis contended that the oil drilling support services company’s plan includes a swath of so-called nonconsensual third-party releases, which could shield nondebtor affiliates from certain liabilities.