Trustee Balks At M. Fabrikant's Disclosure Statement

Law360, New York (October 26, 2007, 12:00 AM EDT) -- The U.S. Trustee in the bankruptcy case of M. Fabrikant & Sons Inc. and Fabrikant-Leer International Ltd. has objected to the companies' proposed disclosure statement, saying the liquidation plan and disclosure statement lacked adequate information for a creditor vote.

In a motion filed Thursday in the U.S. Bankruptcy Court for the Southern District of New York, attorneys for U.S. Trustee Diana G. Adams said the plan had no estimate of possible recoveries for general unsecured creditors.

“Without a meaningful estimate, unsecured creditors will not have sufficient...
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