Committee Files Complaint to Recover Fraudulent Transfers

On or about February 11, 2014, the Official Committee of Unsecured Creditors (the “Committee”) filed a Complaint on behalf of the Bankruptcy Estate against FirstMerit Bank, NA (“FirstMerit”), Oz Gas Aviation, LLC, Richard M. Osborne, and Richard M. Osborne Trust seeking the recovery of alleged fraudulent transfers made by the Debtor on account of a loan between FirstMerit and the other parties for the purchase of an airplane.  The Committee had previously sought and received derivative standing from the Court to pursue said action in the amount of approximately $900,000.  With the Debtor currently unable to confirm a plan of reorganization, the claims set forth in the Complaint represent a potential recovery for the Bankruptcy Estate for the purposes of making distributions to creditors.  A Pre-Trial Conference is currently scheduled for March 27, 2014, at 9:30a.m. in the Erie Bankruptcy Courtroom.