Ownit Mortgage looks to set plan reserve caps for IRS, WARN Act claims

By Caroline Salls

Pittsburgh, Nov. 26 - Ownit Mortgage Solutions, Inc. requested court approval to establish a plan reserve for disputed priority Workers Adjustment and Retraining Notification Act-related claims and Internal Revenue Service claims, according to a Wednesday filing with the U.S. Bankruptcy Court for the Central District of California.

According to the motion, the reserve for the IRS claim would be set at the full claim amount of $14.64 million.

Ownit said it believes it has no liability or minimal liability for the year 2006 taxes sought through the IRS claim.

Meanwhile, Ownit wants to cap the reserve for adversary proceeding claims related to an alleged violation of the Workers Adjustment and Retraining Notification Act at $3.9 million.

The company said some of its former employees are seeking $1.5 million for alleged violations of California law and $2.4 million for alleged violation of federal law.

A hearing is scheduled for Dec. 19.

Ownit, an Agoura Hills, Calif., mortgage lender, filed for bankruptcy on Dec. 28, 2006. Its Chapter 11 case number is 06-12579.

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