In re Mego Financial Corp.

Full title: IN RE: MEGO FINANCIAL CORP., et al., Chapter 11, Debtors

Court: United States Bankruptcy Court, D. Nevada

Date published: Jan 14, 2004

Case No. BK-N-03-52300 - BK-N-03-52304 and BK-N-03-52470 - BK-N-03-52474, (Joint Administration) (Bankr. D. Nev. Jan. 14, 2004)

Opinion

Case No. BK-N-03-52300 — BK-N-03-52304 and BK-N-03-52470 — BK-N-03-52474, (Joint Administration).

January 14, 2004.

JOHN F. MURTHA, ESQ. Reno, NV. By its Attorneys, WOODBURN AND WEDGE.

JUDY B. CALTON, ESQ., Detroit, MI. and JOAN C. WRIGHT, ESQ. JAMES R. CAVILIA, ESQ. ALLISON, MacKENZIE, RUSSELL, PAVLAKIS, WRIGHT FAGAN, LTD. Carson City, NV. By its Attorneys HONIGMAN MILLER SCHWARTZ AND COHN LLP.

ORDER GRANTING SETTLEMENT AUTHORITY UNDER FEDERAL RULE OF BANKRUPTCY PROCEDURE 9019(b)

GREGG ZIVE, Chief Judge, Bankruptcy

This matter having come on to be considered upon the Motion for Settlement Authority Under Federal Rule of Bankruptcy Procedure 9019(b) (the "Motion") filed by C. ALAN BENTLEY, the Chapter 11 Trustee (the "Trustee") of the captioned Debtors, the Court having considered the Motion, any opposition thereto and the argument of counsel, and the Court being fully advised in the premises; THE COURT HEREBY ORDERS that the Trustee may settle or compromise controversies to avoid preferential transfers or to collect accounts receivable, without the necessity of filing a motion or obtaining a court order, without consultation with the Committee as follows:

(a) for persons receiving payments totaling between $1,000 and under $5,000, fifty (50%) percent of the claimed amount;

(b) for persons receiving payments totaling between $5,000 and under $10,000, sixty (60%) percent of the claimed amount;

(c) for persons receiving payments totaling between $10,000 and under $25,000, seventy (70%) percent of the claimed amount;

The Trustee shall provide the Committee with a monthly report of his compromises of controversies in the above categories.

IT IS FURTHER ORDERED THAT the Trustee may settle or compromise controversies to avoid preferential transfers or to collect accounts receivable, after having received the consent of the Committee within two business days of notice from the Trustee, without the necessity of filing a motion or obtaining a court order:

(a) for persons receiving payments totaling between $25,000 and $25,000, eighty (80%) percent of the claimed amount; and

(b) for persons receiving payments totaling $250,000 or over, ninety (90%) percent of the claimed amount.