Judge Sides With Trustee, Tells Bicent To Fix Ch. 11 Plan

Law360, Wilmington (July 30, 2012, 10:36 PM EDT) -- A Delaware judge held up confirmation of Bicent Holdings LLC's Chapter 11 plan Monday, finding that while the power plant operator's reorganization was confirmable for the most part, the releases and exculpation provided were far too broad as currently written.

The prepackaged deal came under fire from two sources, with the U.S. Trustee objecting to the plan's “expansive” releases to nondebtor parties and its exculpation clause encompassing nonfiduciary parties, and creditor Lea Power Partners LLC protesting that the plan took advantage of unsecured creditors for the...
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