O.C. Creditors Lose Bid for Late Voting on Recovery Plan
A group of creditors lost a last-minute bid Friday to extend the deadline for voting on bankrupt Orange County’s reorganization plan.
Although the deadline passed May 3, a group of creditors asked U. S. Bankruptcy Court Judge John E. Ryan to allow them to file 100 ballots one week late.
But the judge found the the creditors did not have a good excuse for their late filing.
Bruce Bennett, the county’s bankruptcy attorney, said thousands of other ballots were received in time, and that the plan was approved overwhelmingly.
Bennett said Friday that “all of the necessary pieces are in place to assure confirmation.”
The judge’s decision means that Wednesday’s confirmation hearing for the county’s recovery plan remains on schedule. Among other measures, the recovery plan calls for the county to sell about $800 million in new securities to pay debts, vendors and employees.
Orange County filed for bankruptcy protection in December 1994 after a county investment pool suffered $1.64 billion in losses.
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