Eastern Livestock bankruptcy files disclosure statement

Dec 14, 2012
by WLJ

The trustee in the Eastern Livestock bankruptcy has filed his proposed Disclosure Statement and Plan for dissolving the bankruptcy estate. The plan represents a settlement between the bankruptcy estate of Eastern Livestock and Fifth Third Bank. The plan recognizes Fifth Third’s security interest in the assets of Eastern.

The bankruptcy estate plan releases Fifth Third Bank of any claims in exchange for Fifth Third paying some of its collected collateral (10 percent) to unsecured creditors.

Ballots were sent to creditors eligible to vote on the plan, and had to be returned by Nov. 28. If you have questions, please contact the trustee’s counsel, Ms. Terry Hall, at 317/237-1230; direct line 317/237-1230; Fax: 317/237-8418; cell 317/370- 7583; or email terry.hall@ faegrebd.com.

According to the estimates in the plan, general unsecured creditors are projected to receive 25 cents on the dollar of their claims as a result of the trustee collecting assets of the estate and settling the estate’s claims against Fifth Third Bank. If a creditor decides to “opt in” and release any of their own claims against Fifth Third Bank, the creditor may receive an additional estimated 11 cents paid by Fifth Third for a total of 36 cents on the dollar. Creditors do not have to decide to opt in before voting.

Creditors will be given the opportunity to decide to opt in and settle their claims against Fifth Third Bank if the plan is confirmed. Please note that these are only estimates of payments. Final payment percentages may vary widely due to the outcome of litigation and other matters in the case.

The trustee is required to notify persons to which the estate may have claims against. The trustee, through a recent filing of Exhibit C to the plan, listed names and potential causes of action. If you are listed on Exhibit C, you should contact your attorney, and may want to call the trustee’s counsel if you have questions. Being listed on Exhibit C does not mean that you will be sued; it does mean that you may be sued. Also, please note that the list is not exhaustive and there may be other claims that the trustee may bring against people who are not listed.

Some creditors have joined together to sue Fifth Third Bank. For more information regarding claims, please contact: Laura Day DelCotto, Esq., DelCotto Law Group PLLC, 200 North Upper Street, Lexington, KY 40507; phone 859/231-5800; Fax 859/281- 1179; ldelcotto@dlgfirm.com or www.dlgfirm.com or W. Scott Newbern P.L., 2982 East Giverny Circle, Tallahassee, FL 32309; phone 850/591-1707; Fax 850/894- 0871; wsnewbern@msn. com. — WLJ