Sirva creditor argues $5 million claim qualifies for full cash recovery

By Jennifer Lanning Drey

Portland, Ore., March 27 - Sirva Inc. creditor Owner Operator Independent Drivers Association (OOIDA) asked the court to force Sirva to reclassify the association's $5 million claim as an unsecured ongoing operations claim, which would allow a full cash recovery for the creditor, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The claim is classified as a general unsecured claim and entitled to no distribution under the plan.

The OOIDA claim stems from a pre-bankruptcy settlement between Sirva and the association resolving claims of violations of federal laws regulating the operational agreements between the companies. Under the settlement, Sirva agreed to pay OOIDA $8 million in three installments.

However, Sirva has only made one $3 million payment thus far.

A hearing is scheduled for April 10.

Sirva, a Westmont, Ill.-based relocation services provider, filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 08-10375.

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