DatabaseUSA has been granted an extension for confirming its plan for the reorganization in its Chapter 11 bankruptcy case.
The period of having the plan confirmed has been extended until the 14th business day after the confirmation hearing on the plan, according to documents on file with U.S. Bankruptcy Court for the District of Nevada.
The main debtor, Infogroup, will not file a competing plan of reorganization in that time frame.
The confirmation hearing was originally scheduled for August, but will now take place on October 22-23.
Among the unsettled matters is a motion by Infogroup for authority to pursue claims against Vinod Gupta, founder of both Infogroup and DatabaseUSA; Everest Group LLC; Research USA LLC, the Insider Transferees of Research USA, Red Fox Industries, and Robins Kaplan LLC.
Also pending is a motion to appoint a Chapter 11 trustee or an examiner with expanded powers and a motion to approve a settlement between DatabaseUSA and Everest Group.
DatabaseUSA describes itself as a data and email marketing services firm.
Infogroup has won a $10.2 million judgment against DatabaseUSA for alleged copyright infringement. In addition, Gupta was ordered to pay $10.2 million in a breach-of-agreement judgment won by Infogroup.
Gupta paid the personal judgment in May. But the DatabaseUSA payment remains in limbo due to the Chapter 11 bankruptcy filing made by DatabaseUSA in January 2019.
In a filing in March 2019, Infogroup claimed acknowledgement by Gupta and company that there were “two purposes for this bankruptcy,” one being “to prevent Infogroup from executing on a judgment, pending appeal, without posting bond.”
The second was to assert that “Debtor is judgment proof by reason of insider liens,” in the event of a loss on appeal, it added.
In schedules filed last year, DatabaseUSA claimed to owe a $34.4 million secured debt to its 90.13% owner Everest Group LLC, according to Infogroup.
Gupta controls “both Debtor and Everest Group LLC,” Infogroup asserted.
In another filing, Infogroup alleged that DatabaseUSA is “one of many affiliated entities controlled by Vinod Gupta,” adding: “Confusion and mystery surround the interrelationships of such entities.”