Debtor Files Amended Chapter 11 Plan of Reorganization and Amended Disclosure Statement

After the Court entered an Order denying the Debtor’s Disclosure Statement of 12/31/10 subsequent to the hearing held on 2/10/11, the Debtor on 2/17/11 filed an Amended Chapter 11 Plan of Reorganization (“Amended Plan”) and Amended Disclosure Statement, as required by subsequent Order of Court.  The Debtor now proposes to pay unsecured creditors with claims greater than $1,500.00 approximately ten percent (10%) over three (3) years, and those with claims equal to or less than $1,500.00 approximately fifty percent (50%) after Plan confirmation.  A hearing on the approval of the Amended Disclosure Statement is scheduled for February 24, 2011, at 10:00 a.m. in the Bankruptcy Courtroom, U.S. Courthouse, 17 South Park Row, Erie.  

The Debtor also makes certain concessions in its Amended Disclosure Statement to address the prior Objections of Mercer County State Bank, the Pension Benefit Guaranty Corporation, and First Niagara Leasing, Inc.  Additionally the Debtor now includes more specific allocations for the approximately $80,000.00 in proceeds from its prior public auction of unencumbered assets. 

If you would like to have complete access to the Bankruptcy Court docket in this case, you can request a PACER I.D. by following the PACER link on this page, which will enable you to access the docket as well as view and print documents filed in the case.  Please also feel free to contact us at wldcommittee@quinnfirm.com to obtain a copy of the Amended Plan, Amended Disclosure Statement, or any other pleadings as filed.

Mercer County State Bank, Pension Benefit Guaranty Corporation Among Creditors Filing Objections to Debtor’s Disclosure Statement

As posted previously, on December 31, 2010, the Debtor filed its Chapter 11 Plan of Reorganization (“Plan”), Disclosure Statement to Accompany Chapter 11 Plan of Reorganization (“Disclosure Statement”), and Motion for Authority to Incur Secured Debt, to Enter into Financing Agreement with Mercer County State Bank (the “Bank”), and to Grant First Priority Liens pursuant to Bankruptcy Code Section 364(C) (“Motion”).  On January 31, 2011, the Bank filed an Objection to the Disclosure Statement to the extent that it does not adequately explain how the Debtor proposes to make a total distribution of approximately $2,124,000.00 when the Bank has agreed to lend no more than $2,000,000.00 to the Debtor pursuant to the refinancing proposed by the Motion.

In addition on January 28, 2011, the Pension Benefit Guaranty Corporation (“PBGC”) filed an Objection to the Disclosure Statement to the extent that it does not adequately explain how the Debtor intends to treat its alleged obligation to provide retirement benefits to its employees.

Finally on February 3, 2011, First Niagara Leasing Inc. (“First Niagara”) filed an Objection to the Disclosure Statement to the extent that it listed First Niagara’s claim in an amount lower than what First Niagara alleges its claim to be.

A hearing on the approval of the Disclosure Statement is scheduled for February 10, 2011, at 10:00 a.m. in the Bankruptcy Courtroom, U.S. Courthouse, 17 South Park Row, Erie.