US Trustee Blasts 'Broad' Releases In Tuscany's Ch. 11 Plan

Law360, Wilmington (May 15, 2014, 3:06 PM EDT) -- The U.S. trustee’s office took exception late Wednesday to Tuscany International Drilling Inc.'s Chapter 11 plan, arguing that it can’t be confirmed with its “overly broad” releases and that a plan supplement doesn’t include enough information about the consortium proposed to buy the debtor’s assets.

In a motion before the Delaware bankruptcy court, U.S. Trustee Roberta A. DeAngelis contended that the oil drilling support services company’s plan includes a swath of so-called nonconsensual third-party releases, which could shield nondebtor affiliates from certain liabilities.

The bankruptcy watchdog...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.