FirstMerit, Debtor Oppose Committee’s Motion for Authority to Prosecute Fraudulent Transfers

Updating a previous post, on or about February 14, 2013, FirstMerit filed an Objection to the Committee's Motion for Authority to Prosecute Fraudulent Transfer Action (“Objection”).  The Debtor also filed a Response in Opposition to Motion for Authority to Prosecute Fraudulent Transfer Action (“Response”, and together with the Objection, “Objections”).  The Objections argue in part that authority to decide whether to pursue such litigation should remain solely with the Debtor and that the cost of pursuing such litigation is greater than the benefit to creditors in light of the Debtor’s proposed Plan of Reorganization. 

Conversely, RBS Citizens, NA s/b/m Charter One Bank, NA (“RBS”) filed a response joining with the Committee’s position.  A hearing remains scheduled for Thursday, February 21, 2013 at 10am.