Orianna committee asks court to postpone plan confirmation hearing

By Caroline Salls

Pittsburgh, July 3 – The official committee of unsecured creditors for the 4 West Holdings, Inc. (Orianna) Chapter 11 case asked the U.S. Bankruptcy Court for the Northern District of Texas to adjourn the July 16 hearing on confirmation of the company’s plan of reorganization, according to a motion filed Tuesday.

The committee said the case parties participated in mediation on June 26, and, at a June 27 hearing, Orianna’s counsel said the parties were within “striking distance” of a settlement.

The plan sponsor provided the committee with a settlement offer on June 27, the motion said, that would resolve all of the open issues and pave the way for a consensual plan.

Although the committee said it accepted the settlement offer before Omega’s termination deadline, the creditor group said Omega disputes its contention that the parties have settled.

“Upon information and belief, Omega is unwilling to honor the settlement offer accepted by the committee for reasons unrelated to the deal struck because of underlying issues associated with the plan generally, which may include concerns over the accuracy (and collectability) of certain accounts receivable, as well as the extent of certain expenses,” the motion said.

Dallas-based 4 West holds the Orianna Health Systems trademark. It filed for Chapter 11 on March 6 under case number 18-30777.

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