TLC readies for busy fall in bankruptcy proceedings
BUFFALO – Attorneys gathered Monday to take care of housekeeping matters for a busy fall in TLC’s bankruptcy proceedings.
Several motions were set for Chief Judge Carl L. Bucki’s consideration.
First, TLC Attorney Jeff Dove asked for more time considering the bid for surplus land. One bid from Tony Borrello was received for the land before TLC’s last hearing on July 14. Questions remained about the actual amount of land being purchased. Dove said these questions have still not been answered.
“It was a reasonable offer, the only one we received. But, it is a small amount compared to the overall debt. We ask for another 30 days to work out issues,” he said indicating no hurry for the sale of the property.
Bucki granted the extension until a hearing on Sept. 29 at 1 p.m.
Dove also presented an agreement between TLC and secured creditors for the continued use of cash collateral until Nov. 24.
Cash collateral allows TLC to use revenues toward operation instead of being directed toward a debt. Secured creditors include Brooks Memorial Hospital, UPMC and the Dormitory Authority of New York.
Dove noted one difference is that Brooks and UPMC will receive $25,000 per month payments, $15,000 more than the last agreement for cash collateral.
Attorneys for Brooks, UPMC and the creditors’ committee had no objection to the agreement. Bucki approved the agreement and scheduled a Nov. 24 hearing at 1 p.m. for another cash collateral motion.
Dove also requested a control date for a hearing on Oct. 27 in case TLC is not able to meet conditions pertaining to a restructuring plan and wishes to extend the deadline.
A hearing was tentatively scheduled for Oct. 27 at 11:30 a.m. If conditions are met and there is no need for an extension, this hearing will be canceled.
Dove also requested a bar date be set for unsecured creditors to file proof of claims. He asked that date be set for Oct. 10 at 5 p.m., which would give creditors over double the required time to submit claims.
Bucki approved the request with a few wording corrections.
Finally, Dove asked that an exclusivity order be approved. He explained this is a protective action to be sure TLC is the only entity able to submit a restructuring plan within the time period specified. He said due to regulations, it is unlikely another plan would be submitted, but they would like to avoid “distractions” in the case.
“I think with all the red flags and disruptions in the case, it is justified,” Creditors’ Committee Attorney Steve Donato said.
There were no objections from other attorneys in attendance and the exclusivity periods were approved first to Dec. 12 and then to February 2015.
The next hearing for TLC will be Sept. 29 at 1 p.m.