Epworth Villa bond trustee supports confirmation of Chapter 11 plan

By Caroline Salls

Pittsburgh, Dec. 9 – Epworth Villa’s Oklahoma County Finance Authority revenue bond trustee intends to support the company’s Chapter 11 plan unless directed otherwise by bondholders before the Dec. 11 plan confirmation hearing, according to a notice released Wednesday.

Bond trustee BancFirst said all holders of claims and interests entitled to vote on the plan cast their ballots in favor of the plan except for class four claimant John Occhipinti, who was voting as personal representative and next of kin of Jimmie Lee Occhipinti, Kathryn Ocariz, Susan McMillian and James Occhipinti. Occhipinti also objected to confirmation of the plan, arguing that the plan did not provide for any distributions to pay for any portions of the class four claims not covered by insurance.

Occhipinti also said excess litigation trust recoveries should be distributed to holders of uninsured portions of the class four before any distribution to Epworth Villa.

According to Wednesday’s release, the Occhipinti objection was resolved through modification of the plan. Under the modified plan, to the extent the litigation trust has proceeds that exceed the amount needed to pay the Hicks class six claim in full, the excess will be used to pay any uninsured portion of the class four claims before further distribution to Epworth Villa.

As a result, Occhipinti changed his rejecting vote on the plan.

“With the modifications to resolve the Occhipinti objection, the trustee continues to believe that confirmation of the modified plan...is in the best interests of the bondholders,” the release said.

Under the modified plan, Epworth Villa continues to propose to continue to pay its obligations under the bond documents in the ordinary course of business, which will allow the trustee to make regular payments to bondholders.

Epworth Villa, an assisted living facility in Oklahoma City, filed for bankruptcy on July 18, 2014. The Chapter 11 case number is 14-12995.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.