Feds Oppose Rubio's Coastal Grill Ch. 11 Plan's Provisions

Law360 (December 9, 2020, 6:13 PM EST) -- The United States government, on behalf of the Internal Revenue Service and the Small Business Administration, objected to the proposed Chapter 11 plan of bankrupt restaurant chain Rubio's Coastal Grill late Tuesday, saying the agencies' claims aren't being handled in compliance with the bankruptcy code.

In the objection filed in Delaware bankruptcy court, U.S. Department of Justice attorneys said the plan is seeking to disburse a settlement amount to satisfy outstanding tax claims from the IRS instead of providing payment in full as required under the bankruptcy code.

The agency said that Rubio's has not yet filed its 2020 tax returns,...

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