Shareholders Committee Will Stay In OCA Bankruptcy

Law360, New York (July 24, 2006, 12:00 AM EDT) -- A judge has upheld the creation of an official shareholders committee in the bankruptcy of orthodontic services company Orthodontic Centers of America Inc., thwarting Bank of America’s efforts to have the committee disbanded.

The bank had argued for the dissolution of the committee, claiming that shareholders should not have a major say in the bankruptcy proceedings since they are not likely to recover significant funds.

Secured creditors stand to recover about $103 million, and unsecured creditors have claimed about $6 million. Since OCA is currently only...
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