Vineyard National's plan confirmation hearing continued to May 12

By Lisa Kerner

Charlotte, N.C., April 6 - Vineyard National Bancorp's plan confirmation hearing was continued to May 12 from Tuesday, according to an attorney close to the case.

As previously reported, Vineyard's official committee of unsecured creditors and the Federal Deposit Insurance Corp. agreed, subject to court approval, to continue Vineyard's plan confirmation hearing until May 12.

On March 25, FDIC, as receiver for Vineyard Bank NA, filed an objection to Vineyard's joint plan of liquidation and claimed damages of more than $60 million.

The continuation will give the debtor and the committee time to fully consider FDIC's objection.

FDIC said Vineyard's plan fails to address how FDIC "will be repaid or dealt with regarding its super priority claim for avoidable and recoverable fraudulent conveyances."

The plan also does not provide a separate and distinct class for this priority claim which does not fall into any other classes.

FDIC said it does not believe Vineyard's plan is feasible, since there appears to be only about $1 million in the estate.

In November Vineyard filed its plan of liquidation under which all of its assets will be liquidated and proceeds will be distributed to creditors by a liquidating trustee.

Vineyard National, the Corona, Calif., holding company for Vineyard Bank, filed for bankruptcy on July 21, 2009. Its Chapter 11 case number is 09-26401.

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