Court Enters Order Directing Debtor to File Second Amended Plan and Disclosure Statement

On 4/1/11 the Bankruptcy Court entered an Order dismissing the Debtor’s Amended Chapter 11 Plan of Reorganization (“Amended Plan”).  On or before 4/26/11, the Debtor shall file and serve a Second Amended Plan and Disclosure Statement primarily to address those Objections raised with respect to the Amended Plan.  No further balloting will be necessary unless there are detrimental proposed changes as to any class of creditors.  A hearing on the confirmation of the Second Amended Plan and Disclosure Statement has been scheduled for 4/28/11 at 10:00 a.m. in the Erie Bankruptcy Courtroom, United States Courthouse, 17 South Park Row, Erie, Pennsylvania 16501.  The Court also entered Orders continuing generally all Objections until that date and time.

In addition, on 4/5/11 the Court entered an Order Authorizing Use of Cash Collateral pursuant to Mercer County State Bank’s (the “Bank”) agreement with the Debtor to extend the deadline upon which its commitment to refinance the Debtor expires until 5/18/11.  The Court also entered an Order continuing generally the hearing on the Debtor’s Motion for Authority to Incur Secured Debt, to Enter into Financing Agreement with the Bank, and to Grant First Priority Liens pursuant to Bankruptcy Code Section 364(C) until 4/28/11.