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Lucky Dragon Hotel & Casino – Amended Plan and Disclosure Statement Filed July 26, 2018 – Lucky Dragon Hotel & Casino filed with the U.S. Bankruptcy Court a Second Amended Plan and related Disclosure Statement [Docket No. 610]. According to the Disclosure Statement, “The Debtors Second Amended Plan proposes to sell the Debtors’ Property and Assets, in Section IV.D.3. The Debtors are currently finalizing the terms of the Auction and their proposed Stalking Horse Bidder. As of the date hereof, the sale of Debtors’ Property may total $53,000,000. If this were the winning bid at the Auction, there would be insufficient funds to pay general unsecured creditors, and may be insufficient to pay all secured claims and administrative expenses. The Debtors anticipate the Auction will generate sufficient interest and there will be a vibrant sale process, which in turn will generate additional funds to pay creditors up to the full amount of their Allowed Claims. If there are sufficient funds generated to pay all creditors in full, the Debtors will remain in control of their estates post-confirmation and will administer any remaining assets. If there are not sufficient funds generated to pay all Allowed Claims in full, the Debtors’ remaining Assets, including the Causes of Action, will be transferred to the Liquidation Trust.” The Court scheduled a September 13, 2018 confirmation hearing.
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