Court Sets Deadline for Final Plan; Committee Authorized to Pursue Fraudulent Transfers; Other Matters Settled or Continued

On or about August 2, 2013, the Court entered an Order converting the previously scheduled Disclosure Statement hearing of August 8, 2013 to a general status conference hearing based on a possible resolution of pending disputes.  The Parties continue to negotiate in an effort to formulate a consensual plan of reorganization for the Debtor that will be acceptable to most creditors.  As a result, the Court entered an Order on August 12, 2013, directing the Debtor to file a final plan of reorganization and disclosure statement by September 23, 2013.

Meanwhile the Court also entered an Order on or about August 9, 2013, granting the Committee’s previously filed Motion for Authority to Prosecute Fraudulent Transfers against FirstMerit Bank, NA , Oz Gas Aviation, LLC , Richard M. Osborne, and Richard M. Osborne Trust.  It is expected that the Committee will refrain from filing such claims while the Parties continue to negotiate a consensual plan.

Additionally, on or about July 13, 2013, the Receiver reached a settlement with the Debtor and RBS regarding the dispute over its fee application.  Per the terms of settlement, the Court entered an Order on July 15, 2013, approving the Receiver’s fees in the amount of $250,000.  On or about July 18, 2013, the Debtor and Wells Fargo agreed to reschedule Wells Fargo’s Evidentiary Hearing on Motion for Relief from the Automatic Stay and Motion to Convert Case from Chapter 11 to Chapter 7 in the affiliated Great Plains Bankruptcy Case for August 29, 2013, wit response due August 22, 2013.