Northeast Biofuels Disclosure Statement Approved

Law360, New York (November 6, 2009, 12:35 PM EST) -- A bankruptcy judge has approved Northeast Biofuels LLP's disclosure statement and has given creditors until Dec. 2 to vote on a plan of reorganization that contemplates pennies-on-the-dollar recovery for creditors of the liquidated upstate New York ethanol supplier.

Judge Margaret Cangilos-Ruiz's order, issued Thursday in the U.S. Bankruptcy Court for the Northern District of New York, came ahead of a Dec. 9 plan confirmation hearing and set a Dec. 4 deadline for plan objections.

The debtors estimate that the holders of secured claims would recover only...
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