OCA shareholder files objection to revised reorganization plan

By Jennifer Lanning Drey

Eugene, Ore., Aug. 25 - OCA, Inc. shareholder Eric Nagel filed an objection to the company's revised plan of reorganization, according to a Friday filing with the U.S. Bankruptcy Court for the District of Louisiana.

Nagel said in the objection that the plan as drafted would release third parties from material consideration, which the company's current decision-makers characterize as a compromise of OCA's claims against themselves.

However, the directors may be using their position as an opportunity to clear themselves from personal liability, which defeats the rights of creditors and shareholders, Nagel said in the objection.

In addition, Nagel said the disclosure statement does not satisfactorily explain the rationale or benefits of the releases.

OCA filed its revised plan of reorganization on July 21.

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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