Court Grants Debtor’s Third Motion to Extend Time for RBS Settlement; 1st Source Bank Files Motions for Contempt and Sanctions

On or about September 29, 2014, the Debtor filed a Third Motion to Extend Time in connection with its prior settlement with RBS, which was approved by Court Order following the Plan Confirmation Hearing on October 2, 2014.  The Order dated October 3, 2014, stated that payment of the RBS settlement amount per the Settlement Agreement and Settlement Orders shall be timely if paid by October 30, 2014, and the creation of the escrow deposits required in the GPE and JDOG cases for unsecured creditors shall be timely if made by November 15, 2014.  As a result, the Court entered an Order continuing the Plan Confirmation Hearing to November 13, 2014, at 9:30a.m. in the Erie Courtroom.

In the meantime, the Debtor participated in mediation in an effort to resolve its ongoing dispute with 1^st Source Bank surrounding their Motion for Relief from the Automatic Stay (“Motion for Relief”), which was unsuccessful. 1^st Source Bank has since filed a Motion for Contempt and Motion for Sanctions against Richard M. Osborne (“Osborne”), GPE, and the Debtor, upon which the Court entered an Order scheduling a hearing on the same for October 28, 2014, at 10:00a.m. in the Erie Courtroom, and directing Osborne to personally appear.  The Court also entered an Order scheduling Trial on 1^st Source Bank’s Motion for Relief for the same day and time.