Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
This is what he sent me
If you are talking about changing the treatment of all of the creditors, this is what I think would happen if we tried to do that.
First, as we discussed, we would have to get an expert witness to testify to what the current market rates are for similar loans in this region or in the country. The Judge will not allow any testimony from you about what other deals are available, because of the hearsay rule. He also will not allow us to show him documents from other sources about other deals, also because of the hearsay rule. The hearsay rule states that one person can’t testify as to what another person said. There are exceptions, but not to this situation.
We would have to amend the plan to change the treatment of the secured creditors, and disclose to them our expert witness. Then they could schedule a deposition of the expert witness, conduct other discovery, and eventually we would have a trial on confirmation of the plan. Colonial would almost certainly fight any changes to their treatment, and so would Bank of America. They would also argue that we are bound by the previous settlements, and can’t change it now. There is no guarantee which way the judge would rule on that issue.