Judge Rejects Barnes Bay Ch. 11 Plan

Law360, Wilmington (September 20, 2011, 3:14 PM EDT) -- A Delaware bankruptcy judge on Tuesday rejected Barnes Bay Development Ltd.’s reorganization plan due to the unequal treatment of similar creditors, heeding the objections of creditors seeking the return of deposits on residences at the developer’s swanky Caribbean resort.

After evidence wrapped up on the second day of a hotly contested confirmation hearing, U.S. Bankruptcy Judge Peter J. Walsh cut off closing arguments and said he would issue a ruling denying confirmation of the plan by the end of the week.

“I’ve already made up my...
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