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Storytelling back in court: Reorganization plan to be considered

If all goes according to plan Feb. 7, the International Storytelling Center will move one step closer to its proposed reorganization.
A hearing to consider approval of the disclosure statement is scheduled for 9 a.m. in the bankruptcy courtroom of the James H. Quillen United States Courthouse in Greeneville.
Judge Marcia Phillips Parsons ordered the hearing in response to the disclosure statement and plan of reorganization filed by ISC on Dec. 29, 2011.
“We don’t have any reason to believe the court will not look favorably on the statement,” ISC Counsel Mark Dessauer said.
According to Dessauer, the purpose of Tuesday’s hearing is to address objections from creditors and questions from the court.
“If any of the creditors have filed objections, those will be discussed, and the court can also raise issues,” he said.
The deadline for filing and serving written objections to the disclosure statement was Feb. 2. No objections were filed, however requests for some revisions were expected.
The ISC may then be required to file an amended disclosure statement addressing any unresolved items.
If Parsons signs an order to approve the original or amended disclosure statement, a copy will be provided to all creditors with a ballot to solicit acceptance of the plan. Only the creditors whose claims are considered impaired because they will be modified in terms of principal, interest, or length of time for payment are entitled to vote. These creditors include Washington County, the Town of Jonesborough, the Tennessee Department of Revenue, Rural Development, Bank of America, and the unsecured creditors.
Holders of claims not impaired under the plan are conclusively presumed to have accepted the plan, and solicitation of acceptances from the holders of such claims is not required and will not be undertaken.
Another hearing will be scheduled for confirmation of the plan. At that time, the court must determine if the plan has been accepted by each impaired class. According to bankruptcy code, the plan has been accepted if members in favor hold at least two-thirds in amount owed and more than one-half in number of all allowed claims of the class members actually voting.
The court must also find that each member of an impaired class will receive or retain as much under the plan as it would if ISC were liquidated, as of the effective date of the plan, under Chapter 7 of the bankruptcy code. This is known as the “best interest of creditors test.”