OCA equity committee objects to DIP amendment as contrary to business plan

By Caroline Salls

Pittsburgh, Aug. 8 - OCA, Inc.'s official committee of equity security holders objected to the company's motion for an amendment to its debtor-in-possession facility, saying the amendment contradicts the company's business plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

According to the objection, the DIP amendment request "is nothing more than a thinly veiled attempt to sidetrack the equity committee and frustrate the equity committee's efforts to propose an alternative transaction" to the company's plan of reorganization in connection with its plan support agreement.

The committee said the DIP amendment is contrary to the business statement set forth in OCA's plan because the new investments for which the company is requesting a $5 million increase to its line of credit were never disclosed in the disclosure statement or reflected in the plan.

According to the committee, the successful implementation of the company's business plan directly relies upon the rejection of a limited number of business service agreements, while maintaining OCA's business relationship with about 168 affiliated doctors through the execution of amended agreements.

OCA, a Metairie, La., provider of business services to orthodontic and dental practices, filed for bankruptcy on March 14. The Chapter 11 case number is 06-10179.

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