GMX's Ch. 11 Plan Can't Be Confirmed, Trustee Says

Law360, New York (January 10, 2014, 10:17 PM EST) -- The U.S. trustee objected Friday to GMX Resources Inc.'s proposed reorganization, saying the bankrupt oil and gas producer's Chapter 11 plan contains releases that make the plan unconfirmable.

U.S. Trustee Richard A. Wieland claims that GMX's reorganization cannot be approved as it violates the Bankruptcy Code by including releases for nondebtor parties, according to an objection filed in Oklahoma court.

The releases fail to pass muster under the code because GMX's plan — which calls for transferring the bulk of its assets to a group of...
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