On or about February 27, 2015, the Debtor-out-of-possession filed its Sixth Amended Plan, as well as a Motion for Consideration of the same and a Motion to Approve Financing with Private Capital Group. The Debtor’s new filings seek to borrow $4m from Private Capital Group for the purposes of paying RBS $3m as payment in full of their previous settlement agreement, paying 1st Source Bank approximately $500,000 on their secured claim(s), and using the remaining $500,000 to fund additional payments needed on the Effective Date of the Plan. As a result, the Court entered an Order on March 2, 2015 setting a Status Conference for March 12, 2015 at 10:30am in the Erie Courtroom for the purpose of discussing the position of the Chapter 11 Trustee vis-à-vis the Debtor-out-of-possession’s Plan.
The Debtor continues to propose to pay unsecured creditors in full at Plan confirmation or in the months thereafter by way of monthly payments. However, the contingencies contained in the commitment letter from Private Capital Group render the proposed source of funding unclear. Separately, the Chapter 11 Trustee and the Committee filed a Motion to Reopen and Determine Status of Adversary Proceeding and Derivative Standing of [the Committee] for the purposes of determining the status of the prior claims against First Merit Bank, et al., regarding the fraudulent transfer of funds pursuant to an airplane loan. A hearing has been scheduled on that Motion for April 9, 2015 at 9:30am in the Erie Courtroom.
