In re Puff
United States Bankruptcy Court for the Northern District of Iowa
2011 WL 2604759
Puff filed for chapter 11 reorganization, with secured creditors Wells Fargo Financial Leasing (Wells Fargo) and Farmers Savings Bank (Farmers) holding claims on real estate whose valuations they disputed with Puff; Wells Fargo also argued some of its secured claims were actually true leases, which would be handled differently in reorganization. Wells Fargo and Farmers objected to Puff's third amended disclosure statement for omitting information about these valuation and lease-characterization disputes, and Puff sought court approval of the statement.
Whether, under § 1125 of the Bankruptcy Code, the debtor's chapter 11 disclosure statement must include information adequate to enable a hypothetical reasonable creditor to make an informed judgment about the proposed reorganization plan.