City hires an attorney to file claim and monitor O-N bankruptcy

Members of the Rogers City Council authorized the hiring of a bankruptcy attorney at their meeting Monday afternoon. City attorney Mike Vogler, in the wake of Oglebay Norton filing for Chapter 11 bankruptcy protection, was instructed by council to pursue an attorney to see what legal steps the city needs to take in protecting its financial interest, in particular, the $175,000 settlement the city is expected to receive in the tax tribunal case of 2003. Oglebay Norton is the parent company of Michigan Limestone Operations, Inc. Vogler contacted an attorney in Bay City who specializes in bankruptcy cases.

?SHE INDICATED that she would be willing to file an appearance on our behalf and to monitor the case, also to take care of filing the claim for us,? Vogler said. The attorney didn?t expect a significant amount of legal work, unless the bankruptcy plan filed by O-N is found to be unreasonable.

If the city needed to challenge the plan, it would probably have to retain an attorney in Delaware, where the bankruptcy by O-N has been filed. A notice to file a claim has not been received by the city, but is expected. Vogler said an oversight committee with the highest unsecured creditors would likely be formed.

?Our interests normally are going to be protected by that committee,? he told council. ?But in the event that we are not satisfied with it, then we can challenge it.?

?BECA– USE THEY have this oversight committee for the bankruptcy case to protect the rights of the unse

cured creditors,? councilman Karl Heidemann asked, ?do you think it?s necessary for us to have separate counsel?? ?I would feel comfortable with it,? Vogler answered, ?not being really well educated with bankruptcy, and given the fact that she is not anticipating any significant amount of work.? Vogler said the bankruptcy appears to have been filed solely to change payment dates and restructure debt, as opposed to trying to get rid of debt.

Council on a 3-0 vote, approved the recommendation and hired the Bay City attorney at a rate of $200 an hour. Councilmen Jim Sinclair and Gary Nowak were not at the meeting.

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