OCA official equity committee upheld against Bank of America challenge

By Jennifer Lanning Drey

Eugene, Ore., July 21 -OCA, Inc.'s official committee of equity security holders will continue in existence after the court in the company's Chapter 11 case threw out a motion from Bank of America to disband the committee.

The U.S. Bankruptcy Court for the Eastern District of Louisiana denied Bank of America's motion following a hearing on Wednesday, according to a Friday filing with the court.

Bank of America is the administrative agent for the pre-petition and post-petition secured lenders in the Chapter 11 case.

Bank of America said in its motion that the equity shareholders committee should be disbanded because it is unlikely that there will be a meaningful recovery for shareholders.

Bank of America also said the court should disband the committee because OCA's equity security holders are not entitled to a distribution under the absolute priority role.

The committee is comprised of Paul Burgon of NightWatch Capital Management, Provo, Utah; David Shuldiner of Kanagawa Holdings LLC, New York; Daniel J. Arbess of Xerion Capital Partners LLC, New York; Adrian J. Costanza, Revere, Mass.; and Charles Stewart, Fort Worth, Texas.

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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