EpiCentre Creditors' Committee

 

 

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The Official Consolidated Creditors Committee  was appointed in the cases of In Re; Pacific Avenue, LLC and In Re: Pac

and complete information about all matte

The Official Consolidated Creditors' Committee  was appointed in the cases of In Re; Pacific Avenue, LLC and In Re: Pacific Avenue, II, LLC before the United States Bankruptcy Court for the Western District of North Carolina , jointly administered, Case No. 10-32903 

(the "EpiCentre Case").

Argue, II, LLC before United States Bankruptcy Court for the Western District of North Carolina , jbout the EpiCenter Case that may be useful to general creditors by posting materials on this website.  The information provided by the Creditors' Committee will not provide full

The Committee will provide information about the EpiCentre Case that may be useful to general creditors by posting materials on this website.  The information provided by the Creditors' Committee will not provide full and complete information about all matters before the court or involving all of the parties to the EpiCentre Case. The bankruptcy court maintains a website at http://www.ncwb.uscourts.gov/ where information about the court and access to the official electronic docket is available.  To access the official docket, you must register for an account at www.pacer.gov. 


REPORT ON CURRENT DEVELOPMENTS

June 8, 2011 Update:

No Date Set for Hering on Confirmation of the Pacific Avenue Reorganization Plan.  The hearing date will be listed on this site when it is set.

Creditors' Committee Seeks Judgment denying Fulcrum Claim for Theater Project:  The Committee seeks a preliminary order disallowing $900,000 from the Fulcrum Claim since it is an obligation of Theater Partners.

Committee Motion for Partial Summary Judgement on Theater Claim

Court Authorizes Mediation of Fulcrum Claim Objection.

June 2, 2011 Update:

Wilfong Properties, LLC Appeals Disallowance of its $2 Million Claim.

Wilfong Notice of Appeal

 

June 1, 2011 Update

On May 27, 2011, the Court Approved the Amended Disclosure Statement filed by the Debtors.

Following the entry of the Court's Order on May 27, 2011 Approving the Disclosure Statement, the debtors will distribute copies of the Disclosure Statement and the Plan of Reorganization that will be considered by creditors.  The Committee will post a notice of the mailing of the Disclosure Statement and the scheduled voting and hearing dates.

 

Order Approving Disclosure Statement

Amended Disclosure Statement

The Court has entered key rulings on large disputed claims:

Court Disallows Wilfong Properties, LLC Claim for $2 Million

Court Dismisses Fulcrum Construction Adversary Proceeding Seeking Access to Funds Earmarked for Creditors.

 

 

 

APRIL 13, 2011 UPDATE

 

The court has set the Committee's objection to the $2 Million claim by Wilfong Properties to May 11, 2011.  The Committee has determined the claim should be disallowed in full and will ask the court to rule on its objection at the next hearing.

The Committee's most recent filing shows that the Wilfong Claim should be disallowed.

Committee's Reply to the Wilfong Claim

 

The Committee's Objection to the $3.5 Million claim by Fulcrum Construction, Inc. has been continued for status hearing at the same time as the hearing set in the Fulcrum Adversary Proceeding seeking to imposed a lien on the entire $1,100,000. fund proposed to be set aside for the entire unsecured creditor group under Class 5 in the proposed reorganization plan.

 

The Committee has sought to intervene in the Fulcrum Advesary case and to consolidate it with the Committee's objection to the Fulcrum Claim.  The Committee believes that there is a serious risk that the parties in the Fulcrum Adversary litigation may agree to give Fulcrum a portion of those funds to settle the litigation despite the view of the Committee that the claim is meritless.

 

The Committee's intervention and consolidation motions have been vigorously opposed by the debtors and Blue Air 2011, LLC who prefer to litigate without the participation of the Committee.  Their objections will be hear on April 27, 2011 at 2 PM in courtroom 126 of the Bankruptcy Court House.

 

The court has entered a scheduling order for the Committee's Objection to the Fulcrum $3,5 Million claim and the Fulcrum Adversary.  Over the Committee's objection the court order the Committee's discovery due on April 7, 2011 from Fulcrum and the debtors' discovery withdrawn. 

The Committee's motion to replace Cam-Ful Industries as a member of the committee with ADW Architects has been set for April 27, 2011 at 2:00 PM.

 

 

APRIL 4, 2011:  COMMITTEE FILES MOTION TO INTERVENE IN FULCRUM LAWSUIT AND CONSOLIDATE OBJECTION TO FULCRUM'S CLAIM TO $1,100,000 FUND EARMARKED FOR GENERAL CREDITORS. 

The Committee has sought to combine its objection to the Fulcrum claim with the litigation brought by Fulcrum to apply the $1,100,000 Fund to its claim alone.  The Committee has asked the Court to hear its motion on April 27, 2011.

COMMITTEE MOTION TO INTERVENE IN FULCRUM LAWSUIT

COMMITTEE MOTION TO CONSOLIDATE LITIGATION WITH FULCRUM

PROPOSED ANSWER OF THE COMMITTEE TO THE FULCRUM LAWSUIT

 

DISCLOSURE STATEMENT HEARING ON APRIL 27, 2011

OBJECTIONS DUE BY APRIL 20, 2011

NOTICE OF HEARING DATES

 

 

PACIFIC REORGANIZATION PLAN AND DISCLOSURE STATEMENT FILED ON MARCH 25, 2011.  $1,100,000 EARMARKED FOR UNSECURED CREDITORS.

The Creditors Committee has negotiated a reorganization plan with Pacific Avenue that provides for the earmarking and set aside of a fund of $1,100,000 for the benefit of the general unsecured creditors.  Despite the $90,000,000 secured debt and risk that general creditors will not receive any payment on their claims, the proposed reorganization plan will return over a million dollars to general creditors.  The plan and disclosure statement may be found through the following link:

PACIFIC AVENUE PLAN OF REORGANIZATION MARCH 25, 2011

 

FULCRUM CONSTRUCTION REPONDES TO COMMITTEE OBJECTION IN SUIT SEEKING EXCULSIVE RIGHTS TO $1,100,000 FUND EARMARKED FOR GENERAL CREDITORS.

Despite receiving an objection to its claim for $3.5 Million from the Creditors' Committee, on March 25, 2011, Fulcrum Construction initiated a separate lawsuit to claim that it should receive all of the funds set aside under the plan for general creditors. The Creditors' Committee will oppose that action and seek to have the court require Fulcrum to participate as a general creditor. The Committee believes that the Fulcrum claim is overstated, excessive and subject to substantial reduction. 

oNFulcrum Complaint

 

 

March 11, 2011

 

The Committee believes that The EpiCentre will soon submit a reorganization plan for consideration by the creditors.  The court will review the disclosure statement that will provide creditors with information about the plan and the treatment of the various classes of creditors. When a plan is filed, the Committee will post it on this site.

The Committee has filed objections to some large claims that it believes should be reduced or disallowed entirely.  Copies of the Objections filed by the committee and the debtors are linked below

Committee Objection To the Claim of Wilfong Properties, LLC for $2.3 Million

Response of Wilfong Properties to Committee Objection

 

Committee Objection to the Claim of Fulcrum Construction , LLC for $3.5 Million

Debtors' Objection to Novant Medical Group Claim

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January 14, 2011

EpiCenter files Motion To Establish Leasing Procedures

Hearing set for January 26, 2011 at 9:30 AM

Objection of the Committee to Ex Parte Notice

 

The Debtors have filed a motion seeking approval of standard minimum leasing terms in their leasing program at the EpiCentre. The Motion also provides for review of leasing practices and terms for "non-conforming" leases.  The Committee was not aware of the proposals until they were circulated and filed by the Debtors.  The Committee has raised a number of objections and concerns and will submit an official Objection to the proposal until the Debtors address its concerns over the terms, notice provisions, and opportunity for the Committee to ensure that the leases are prudent and beneficial to the EpiCenter. 

The Committee has expressed its concern over the prudent management of the EpiCentre following the January 5, 2011 emergency funding request made by the EpiCentre to Blue Air 210,LLC, the new lender on the project.  The Committee's official objection will address the need to ensure that the Committee has an opportunity to review the proposed lease transactions. 

The Committee has also informed the Debtors that the lack of any reorganization proposals and absence of a draft or outline of a reorganization plan is a matter of concern to the Committee.  The Debtors have been under Chapter 11 protection for six months and have received extensions of their exclusive right to file a reorganization plan, but have not provided the Committee with any terms, proposals or planning for their reorganization.  The absence of reorganization planning with the Committee is a major failure on the part of the Debtors in pursuing a reorganization.

January 6, 2011

On December 15, 2011, the committee sent a letter requesting that the debtors file an objection to the proof of claim filed  by Fulcrum Construction, LLC.  The Fulcrum Claim had been scheduled by the debtors as a disputed claim in the amount of $1.2 Million, but the Fulcrum proof of claim asserted a claim for $3.5 Million which included a claim against Epicentre Theater Partners, LLC for nearly $900,000.  Epicentre Theater Partners LLC is a separate entity from the debtors and the committee questioned the basis for inclusion of that claim.  The committee advised the debtors that it would seek authority to object to the claim if the debtors did not proceed with an objection.  As of today, the debtors have not filed an objection to the Fulcrum Claim. Fulcrum has not responded to the committee's letter of December 17, 2010 seeking information about the claim or the committees calls. The committee believes that an objection should be filed against the Fulcrum Claim and will seek leave to pursue the objection of the debtors continue to defer action.

 

January 5, 2011

The debtors have not yet proposed a reorganization plan to the creditors committee. 

On January 5, 2011, the debtors secured an Order authorizing short term financing from their senior secured lender Blue Air 2010, LLC in the amount of $252,403.01. The agreement between Blue Air 2010, LLC and the debtors provides an administrative priority to loan and anticipates repayment by March 10, 2011 from excess cash flow.  If funds are insufficient to pay the debt, the debtors will remit all of their collections to pay the debt.  The emergency funding was sought to enable the debtors to make timely payment of the outstanding real property taxes on the debtors' property and avoid interest and substantial fees and interest for late payment. 

 

The aggregate unsecured claims filed by creditors and listed on the schedules filed by the debtors amount to $12,888,527.91.  The Committee believes that a number of these claims are subject to dispute and may also be duplicative of other claims.  The debtors have identified $2,490,672 of the aggregate unsecured claims as claims held by insiders.

 

efore the court or involving the parties to the EpiCenter Case. The bankruptcy court a website at http://www.ncwb.uscourts.gov where information about the court and access to the official electronic docket is available.  To access the official docket, you must register for an account at www.pacer.gov. 

On November 29, 2010, Blue Air 2010, LLC filed a notice of the transfer of the claim held by Regions Bank, NA to Blue Air 2010, LLC.  Regions Bank asserted a senior secured claim against the debtors in an amount in excess of $92 Million. As part of the purchase of the Regions interest, the debtors and Blue Air 2010,LLC agreed to terminate the pending litigation between the debtors and Regions.

 

The court set November 30, 2010 as the last date for the filing of proofs of claim by general creditors.  You should consult your legal adviser for information about the claims administration process and your own individual interest.  The Committee does not provide legal advice and provides the information on this site to assist interested creditors by providing information that the Committee deems useful.

The court set November 30, 2010 as the last date for the filing of proofs of claim by general creditors.  You should consult your legal adviser for information about the claims administration process and your own individual interest.  The Committee does not provide legal advice and provides the information on this site to assist interested creditors by providing information that the Committee deems useful.

 

January 5, 2011

The debtors have not yet proposed a reorganization plan to the creditors committee. 

On January 5, 2011, the debtors secured authorization from the court to secure short term

financing from their senior secured lender Blue Air 2010, LLC in the amount of $252,403.01. The agreement between Blue Air and the debtors provides an administrative priority to loan and anticipates repayment by March 10, 2011 from excess cash flow.  If funds are insufficient to pay the debt, the debtors will remit all of their collections to pay the debt.  The emergency funding was sought to enable the debtors to make timely payment of the outstanding real property taxes on the debtors' property and avoid interest and avoid substantial fees and interest for late payment. The application is docket ite