Court Enters Order Granting Objections to Debtor’s Disclosure Statement, Setting Mediation

On March 7, 2013, the Court entered an Order granting the various Objections to the Debtor’s Disclosure Statement and, upon consent of Counsel, denying the Debtor’s Chapter 11 Plan.  The Court further extended the exclusivity period for the Debtor to propose and solicit a plan of reorganization until April 22, 2013, in order to allow the Debtor and RBS to work toward RBS’s crucial assent to any plan by way of mediation.  The Court’s directive with respect to mediation is subject to a key condition, in that the Debtor shall provide RBS with an audited individual net worth statement for the Debtor’s principal, Richard Osborne, on or before March 21, 2013.  Concurrently therewith, RBS shall also provide the Debtor with a detailed statement of its claims.

In the event that such statements are prepared and exchanged, the Debtor and RBS shall have commenced and concluded a mediation on or before April 8, 2013.  Any unexcused failure by Osborne to strictly comply with his obligations under the Order shall be deemed as “bad faith” and will lead to an immediate termination of the exclusivity period.