Careismatic Is Trying to Rush Bankruptcy Process, Creditors Say

Careismatic Brands LLC’s junior creditors accused the company of trying to improperly push forward a “skeleton” plan outline to start its reorganization plan approval process.

The unsecured creditors’ committee objection comes as the bankrupt medical apparel company seeks approval of its plan disclosure statement—which would allow it to begin polling creditors on its proposed restructuring—at an upcoming court hearing. The committee, which recently opposed Careismatic’s $125 million bankruptcy loan as well, on Tuesday called the disclosure statement a “meaningless shell” that doesn’t give voting creditors sufficient information about the plan.

“The disclosure statement is grossly inadequate and does not function ...