Cenveo Inc.’s reorganization plan, which looks to protect company insiders from future litigation, is facing obstacles from the Securities and Exchange Commission, WSJ Pro Bankruptcy reported. The regulator is objecting to Cenveo’s so-called disclosure statement and reorganization plan because it provides releases to company insiders (including management), lenders and bondholders. Such releases would shield them from being sued in the future. “As written, the plan would bar the SEC from enforcing its full police and regulatory powers against the released parties,” the agency wrote in court papers filed on Wednesday. The SEC, in court papers, noted that an examiner was put in place in March to oversee the bankruptcy proceedings. Susheel Kirplani was appointed by the U.S. Trustee in late March after a key creditor called for the appointment in order to investigate potential insider transactions that could benefit the family behind Cenveo.
