Court Enters Order on 3rd Amended Disclosure Statement; Committee Files Motion for Authority to Pursue Turnover Actions

On or about December 13, 2013, the Court entered an Order scheduling a hearing on the Debtor’s 3^rd Amended Disclosure Statement (“Disclosure Statement”) for Monday, January 27, 2014 at 2:30pm in the Erie Bankruptcy Courtroom.  The Order also directs the Debtor to file on or before January 6, 2014, a Statement that sets forth the identity of each party that will receive a release under the Debtor’s Plan, and the consideration for the same.  Objections to the Disclosure Statement are due on or before January 21, 2014.

Meanwhile the Official Committee of Unsecured Creditors filed a Motion for Authority to Prosecute Turnover Actions (“Motion”) against Oz Gas Aviation, LLC, and Richard M. Osborne.  The Committee’s request for authority relates to the Debtor’s refusal to pursue claims against each party based on certain insider advances that have not been repaid to the Debtor or that have otherwise been re-characterized as uncollectible.  The Court also entered an Order scheduling a hearing on the Motion for January 27, with Responses to the Motion due by January 21.