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.