USA Commercial Mortgage debtor's equity committee seeks allocation of asset sale overbid proceeds

By Caroline Salls

Pittsburgh, Jan. 26 - USA Commercial Mortgage Co. debtor USA Capital First Trust Deed Fund LLC's official committee of equity security holders asked the U.S. Bankruptcy Court for the District of Nevada to enforce a provision in confirmation of the company's plan of reorganization that requires allocation of overbid proceeds from an asset sale, according to a Thursday court filing.

According to the motion, the plan approved the sale of some company assets to Compass Partners LLC and provides that any overbid proceeds generated in the asset auction would be allocated 85% to USA Capital First Trust and 15% to USA Commercial Mortgage.

The committee said the overbid proceeds to be allocated total $9.5 million.

USA Commercial Mortgage, a privately held real estate lender based in Las Vegas, filed for bankruptcy on April 13, 2006. Its Chapter 11 case number is 06-10725.

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