In Re Genesee Cement, Inc.

MEMORANDUM OPINION DENYING APPROVAL OF AMENDED DISCLOSURE STATEMENT

STANLEY B. BERNSTEIN, Bankruptcy Judge.

Issue:

The debtor has filed an amended plan of reorganization which provides that the claims of unsecured creditors will be impaired and the equity security holder, the 100% shareholder, will retain its interest. Must the disclosure statement explain that unless the impaired class of holders of unsecured claims accepts the plan, the debtor’s plan cannot be confirmed under 11 U.S.C. § 1129(b)(2)(B)(ii) because it would violate the “fair and equitable” test?

Factual Background

The amended…