Halcon’s Motion for Summary Judgment Denied; Great Plains Exploration files Motion to Continue Injunction/Temporary Restraining Order

On or about October 19, 2012, Halcon filed a Motion for Summary Judgment (“Motion”) against the Debtor with respect to the Debtor’s Complaint for Injunctive Relief (“Complaint”), as mentioned in previous posts.  On October 23, 2012, the Court entered an Order denying Halcon’s Motion primarily because the Debtor’s Complaint is already on a fast track for trial and Halcon’s Motion is not timely.  As a result, the matter remains scheduled for trial beginning on Monday, November 19, 2012, at 9:30am at Bankruptcy Courtroom, U.S. Courthouse, 17 South Park Row, Erie.

In addition, Great Plains Exploration, LLC (“GPE”), an entity affiliated with Oz Gas, Ltd., filed in its own Bankruptcy Case a Complaint for Injunctive Relief (“GPE Complaint”) against 1^st Source Bank in an effort to extend the benefits of the automatic stay to its principal, Richard Osborne.  GPE filed the GPE Complaint to protect Mr. Osborne from 1^st Source Bank’s collection efforts in Indiana state court to the extent that it views him as an important source of funding for any proposed plan of reorganization.  Because Mr. Osborne is also viewed as an important source of funding for any proposed plan of reorganization in the Oz Gas, Ltd. Bankruptcy Case, the Oz Gas Committee has joined in GPE’s efforts to extend the automatic stay.  Those matters remain pending before the Court.

Bank & Committee File Opposition to Debtor’s Exclusive Right to File a Plan; Trial with Halcon Set

On September 4, 2012, the Debtor filed its Second Motion to Extend Exclusivity Period for Filing a Chapter 11 Plan and Disclosure Statement (the “Motion”), which affects the Debtor’s exclusive right to file a plan of reorganization without competing plans from interested parties.  On October 5, 2012, RBS Citizens, NA s/b/m Charter One Bank, NA (the “Bank”) filed a Response in Opposition to the Debtor’s Motion, asserting that the Debtor’s efforts have not been productive and that any interested party should be allowed to file a plan of reorganization or liquidation.  The Committee thereafter joined in the Bank’s Response in Opposition. 

As a result, the Court entered an Order granting the Debtor’s Motion, except with respect to the Bank and the Committee.  Per the terms of the Order, the Debtor’s exclusive right to file a plan expires thirty (30) days after the Bank or Committee exercise their right to send notice to the Debtor terminating the same.

In addition, updating a previous post, Halcon filed on September 18, 2012, an Answer, New Matter, and Counterclaim to the Debtor’s Complaint for Injunctive Relief.  On September 24, 2012, the Debtor filed an Answer to Halcon’s Counterclaim.  A Trial Date has been scheduled for November 19, 2012, at 9:30am at Bankruptcy Courtroom, U.S. Courthouse, 17 South Park Row, Erie.