Newspaper article THE JOURNAL RECORD

Hearing Split Requested in Landsing Corp. Case

Newspaper article THE JOURNAL RECORD

Hearing Split Requested in Landsing Corp. Case

Article excerpt

A motion requesting a split of a Monday confirmation hearing in a case involving 11 entities managed by Landsing Corp. of Menlo Park, Calif., was filed Friday by the debtors.

The motion, filed in the U.S. Bankruptcy Court for the Western District of Oklahoma, asks the court for a bifurcation order to "streamline" the reorganizations, or an order continuing the entire confirmation proceeding to April 12, 1987.

The original Chapter 11 disclosure statements and plans of reorganization were filed in September, along with Chapter 11 bankruptcy petitions.

The 12 debtors, whose bankruptcy case case are pending, are the co-proponents of two plans of reorganization, which were filed on Sept. 11, 1986, along with the first eight debtor's petitions.

The motion argues that numerous protests from secured creditors have been made that the complexity of the cases prevents resolution in any short time frame.

"At present, the confirmation hearings are scheduled to take place the week of Feb. 9, 1987; yet, none of the pre-confirmation issues which all concerned have acknowledged should be resolved before proceeding to confirmation have been joined," the motion states.

Issues include: valuation of secured creditors' claims and the debtors' properties; the appropriate discount rate or "Plan Rate of Interest," and substantive consolidation, according to the motion.

The debtors request the court to enter an order providing for the bifurcation of the confirmation hearing in this way:

- Beginning Feb. 9, conduct valuations of secured claims and the debtors' properties.

- "It is the debtors' intention," said the motion "to join the legal issues involved in determining the applicability of substantive consolidation principles and the appropriate discount rate or `Plan Rate of Interest' pursuant to the briefing schedule contained in the Dec. 31, 1986, scheduling order. …

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