Alameda objects to debtors’ Plan in bankruptcy case

Alameda Research claims the debtors’ plan is unconfirmable and falls short of disclosure requirements.

1 min read
Updated: January 6, 2023 at 8:31 am Alameda objects to debtors’ Plan in bankruptcy case

Cover art/illustration via CryptoSlate

Alameda objects to debtors’ Plan in bankruptcy case

Alameda Research — alongside affiliates Maclaurin Investments and Alameda Ventures — submitted an objection to the debtors’ Motion for Entry of an Order.

The objection includes approval of a disclosure statement, a confirmation hearing for the plan and states that the debtor’s Plan is “patently unconfirmable” as it falls short of disclosure requirements under section 1125 of the Bankruptcy Code.

Alameda’s objection states that the Plan:

“Unfairly discriminates against holders of Alameda Loan Facility Claims and violates the absolute priority rule.”

The objection also disputed the debtors’ motion on the basis that it “fails to provide adequate information” and that the plan lacks “any legal basis” in regard to “recoveries to claims.”

Alameda requested the Court deny the Conditional Disclosure Statement Motion and direct the debtors to file a new and legally-compliant Plan.

Journalist at CryptoSlate

Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.

Posted In: Bankruptcy, Legal

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