Ocala Funding disclosure statement approved; plan hearing April 12

By Caroline Salls

Pittsburgh, March 8 - Ocala Funding, LLC received court approval of the disclosure statement for its plan of liquidation, according to a Thursday filing with the U.S. Bankruptcy Court for the Middle District of Florida.

The plan confirmation hearing is scheduled for April 12.

Under the plan, substantially all of the company's assets will be either turned over to the senior secured creditors in satisfaction of their claims or transferred to a litigation trust for the benefit of other claimants.

Treatment of creditors will include the following:

• Holders of administrative claims, priority tax claims and non-tax priority claims will be paid in full in cash;

• Holders of secured claims will receive Regions cash, senior secured creditors cash collateral and Ocala mortgage collateral.

Upon the election of the senior secured creditors, the Ocala mortgage collateral can be transferred to the litigation trust to be held for the senior secured creditors;

• Holders of some unsecured claims will receive cash equal to the lesser of 25% of the face value of the claim or its share of $250,000.

These creditors have the option to have their claims treated as class 4 claims, which will consist of class 3 accounts payable unsecured claims whose holders have elected class 4 treatment, Deutsche Bank and BNP Paribas' deficiency claims and a claim of the Federal Deposit Insurance Corp.;

• Holders of class 4 claims will receive beneficial interests entitling them to receive litigation trust assets, as well as a share of distributable cash; and

• Holders of interests and subordinated claims will receive no distribution.

Ocala Funding, an Orlando, Fla.-based financing vehicle, filed for bankruptcy on July 10, 2012. Its Chapter 11 case number is 12-04524.

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