Debtor Files Chapter 11 Plan of Reorganization and Disclosure Statement

On or about January 10, 2013, the Debtor filed its Chapter 11 Plan of Reorganization (“Plan”) and Disclosure Statement setting forth its proposed treatment of creditors.  A hearing on the Disclosure Statement has been scheduled for March 7, 2013, at 10:00 AM in the  Bankruptcy Courtroom, U.S. Courthouse, 17 South Park Row, Erie, with objections to the Disclosure Statement due by February 28, 2013.  Please feel free to contact us at ozgascommittee@quinnfirm.com to obtain a copy of the Debtor’s Plan and Disclosure Statement, and/or any other pleadings as filed.

Committee Files Motion for Authority to Prosecute Fraudulent Transfers

On or about January 17, 2013, the Official Committee of Unsecured Creditors of Oz Gas, LTD (the “Committee”) filed a Motion for Authority to Prosecute Fraudulent Transfers (“Motion”) with respect to payments made by the Debtor to FirstMerit Bank, NA (“FirstMerit”) on account of a loan between FirstMerit and Oz Gas Aviation, LLC (“Oz Aviation”), Richard M. Osborne, and Richard M. Osborne Trust for the purchase of an airplane owned by Oz Aviation.  The total amount of payments made by the Debtor to FirstMerit during the four (4) years prior to the filing of the Bankruptcy Case is approximately $900,000.  The Committee’s Motion seeks standing on behalf of the Debtor to pursue such an action on account of the Debtor’s inherent conflict of interest and refusal to do so.    

A hearing on the Motion has been scheduled for February 21, 2013, at 10:00 AM in the  Bankruptcy Courtroom, U.S. Courthouse, 17 South Park Row, Erie, with responses to the Motion due by February 14, 2013.

Debtor Files Sale Motion; GPE Dismisses Complaint Against 1st Source

Updating previous posts, on or about December 12, 2012, the Debtor filed its Motion to Sell Certain Oil and Gas Leases Free and Divested of Liens (“Sale Motion”) pursuant to the Court’s previous Order of November 21, 2012.  Objections/Responses to the Sale Motion were filed by Interested Party Mark E. Dottore, Creditor Reserve Energy Exploration Company, and Creditor RBS Citizens, NA, s/b/m Charter One Bank.  The proposed sale to Halcon remains scheduled for public hearing and auction on January 25, 2012.

Additionally, on or about December 31, 2012, Great Plains Exploration, LLC (“GPE”) moved to voluntarily dismiss its Complaint for Injunctive Relief against 1^st Source Bank (“Complaint”).  The Court entered an Order on January 2, 2013, dismissing the Complaint with prejudice and declining to extend the automatic stay to GPE’s principal, Richard Osborne.