Bankruptcy Objection Filed

BJ Squared filed with the U.S. Bankruptcy Court an objection to’s Amended Chapter 11 Plan of Liquidation and motion to compromise controversy with VB Funding.

The objection asserts, “Although the Debtors claim that VB Funding dealt with the Debtors at arm’s length, it should be kept in mind that VB Funding owns approximately 45% of the Debtors’ equity, was and remains the Debtors’ principal creditor and, without putting up any cash, has purchased the Debtors’ principal assets other than the to-be-asserted liability claims. The Debtors have proposed a Plan and settlement with VB Funding that may provide VB Funding the immunity it desires, while circulating a Disclosure Statement and motion to compromise that are devoid of discussion of any directors and officers or lender liability claims other than a statement that they intend to bring directors and officers claims and a conclusion that they no claims against VB Funding.”