Orianna creditor asks court to reconsider plan modifications order

By Caroline Salls

Pittsburgh, Dec. 12 – 4 West Holdings, Inc. (Orianna) creditor OHI Asset RO, LLC (Omega) asked the U.S. Bankruptcy Court for the Western District of Texas to reconsider an order granting Orianna approval to make changes to its Chapter 11 plan, according to a motion filed Tuesday.

Omega said the order “impermissibly creates new value” upon recharacterization of Orianna’s transfer portfolio without accounting for Omega’s corresponding $190 million secured claim arising from that recharacterization.

As previously reported, the court ruled that $190 million of transfer portfolio value was made part of Orianna’s estates.

However, Omega said the court’s plan modification ruling does not recognize that such value was fully encumbered by Omega’s liens, thereby resulting in a new $190 million secured claim in favor of Omega.

According to the motion, any plan changes that abridge Omega’s right to payment in full on its $190 million secured claim “is material and adverse to the treatment of Omega’s claims and an impermissible abrogation of Omega’s substantive rights under the Bankruptcy Code.”

Dallas-based 4 West holds the Orianna Health Systems trademark. It filed for Chapter 11 on March 6, 2018 under case number 18-30777.

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