Champion Ordered To Amend Disclosure Statement

Law360, New York (October 26, 2010, 7:38 PM EDT) -- A bankruptcy judge directed Champion Enterprises Inc. on Tuesday to amend its disclosure statement regarding releases for the defunct homebuilder's directors and officers, siding with unsecured creditors in the case.

Judge Kevin Gross expressed "grave concerns" about the way the releases were to be handled under Champion’s proposed Chapter 11 plan at a hearing in the U.S. Bankruptcy Court for the District of Delaware.

The official committee of unsecured creditors objected to provisions in the plan that required creditors to consent to the releases in order...
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