Section 1125 Postpetition disclosure and solicitation (Judge Gargotta)
In re Save Our Springs (S.O.S.) Alliance, Inc. (August 11, 2008)
Issue: Is Debtor a “Small Business Debtor” as Defined in 11 U.S.C. § 101(5D) and is this case a “Small Business Case” as Defined in 11 § 101(5D) and/or should the Debtor be judicially and/or equitably estopped from denying that it is a small business debtor as originally claimed in this case?
Holding: The Court finds that the Debtor is a small business debtor, being judicially and equitably estopped at this stage of the case from changing that position.
In re Save Our Springs Alliance (April 14, 2008)
Issue: Whether (1) the deadline to obtain confirmation can or should be extended; (2) designation of vote was cast in bad faith, and (3) Plan should be confirmed or denied due to: gerrymandering by improper classification, lack of an impaired accepting class, best interest of creditors test not met, feasibility, discharge is not permissible where the plan in essence does not provide for the Debtor’s continuation in “business”, cramdown is not permissible where insider claims are not subordinated to payment in full of all other claims, lack of good faith?
Holding: The Court finds that the Motion to Extend Time should be Granted in part and Denied in part, the Vote Designation Motion should be Denied, and confirmation of the Debtor’s Plan should be Denied.