MediCor official committee asks court to OK settlement agreement

By Lisa Kerner

Charlotte, N.C., March 16 - MediCor Ltd.'s official committee of unsecured creditors asked the court to approve a settlement agreement with the company's directors, officers, Carolina Casualty Co., RSUI Indemnity Co. and additional settling parties.

The settlement is related to MediCor founder Donald K. McGhan's alleged improper use of funds that resulted in the directors and officers borrowing more money than they were equipped to repay which damaged the debtors and their estates, the filing said.

A hearing is scheduled for April 20.

Under the terms of the settlement agreement, Carolina and RSUI agree to pay a total of $4,542,943.57, which includes:

• $275,000 for the benefit of the committee;

• $2,204,443.57 to a qualified settlement fund for distribution to the class members and the individual plaintiffs; and

• $2,063,500 to be held in trust for the payment of potential defense costs incurred by the directors and officers in connection with any of the secured creditors' claims.

MediCor, a North Las Vegas, Nev., health care company that makes and sells products for the aesthetic, plastic and reconstructive surgery and dermatology markets, filed for bankruptcy on June 29, 2007. Its Chapter 11 case number is 07-10877.

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