The progress of the reorganization of Norman-based Pepco Inc. has
been stalled by inaccessible records held by former Chief Executive
Officer Patrick E. Powers and determination of ownership of the more
than 60 partnerships, according to Pepco Trustee Carl Pojezny.
However, things are beginning to change and Pojezny is moving
closer to proposing a Chapter 11 plan of reorganization. On Monday,
he would not speculate a definite date for filing the plan, but,
Pojezny said ownership reports should be completed within 30 days and
a real estate appraiser has begun to evaluate the properties involved
in the bankruptcy case.
"The highest priority is to determine ownership, a complete
evaluation of properties, and combine the two for a reorganization
plan that makes sense for all," Pojezny said.
Pepco partnership holdings include 900 acres of raw land in
Oklahoma and Cleveland counties, office buildings, apartment
complexes and shopping centers. The majority of income producing
properties are in Oklahoma City, Norman and Tulsa.
Partnership agreements filed with the Oklahoma Department of
Securities show a different owner of some properties than what are
shown on the ownership assignment records kept by Pepco.
Consequently, creditors are receiving notices required by the
bankruptcy court in duplication because as an investor in one
partnership, they were a part of assignments made to other
Those investors purchased an interest in partnerships that later
purchased an interest in income-producing properties, rather than
buying new real estate.
Pojezny began in January to place the income producing
partnerships, labeled tier one, into Chapter 11 bankruptcy. The last
of the 21 properties are expected to be filed upon by the end of the
week. They will all be proposed for administrative consolidation.
"During the last 60 days, a lot has been accomplished, considering
the filing of bankruptcy against 21 partnerships," Pojezny said.
"Because of all the partnerships, they are placed in
multi-district litigation to keep everything straight," explained
William Federman, attorney for the trustee.
"There has been no pressure to put the investor partnerships in
bankruptcy," Pojezny said.
Pojezny prioritized the properties for Howard Sears, who is doing
the appraisal, requesting that he first evaluate questionable
properties they would consider liquidating.
"The ones we propose to keep will be determined when he gets
through. We want to be as fair as we can to make a determination,"
Sears will determine which of the properties could be sold and
which would be feasible to the estate. …