Following up on the previous post, the Debtor and RBS had reportedly contacted the Court on the eve of the November 13 continued hearing to relay that they had come to an agreement. The agreement was initially presented to the Court at the continued hearing on the morning of Thursday, November 13. However, before the conclusion of that hearing, the agreement fell through apparently as a result of certain default provisions not acceptable to the Debtor and/or its principals.
As a result, on Friday, November 14, the United States Trustee’s Office appointed Guy C. Fustine, Esq., as Chapter 11 Trustee in all three (3) related Bankruptcy Cases, which the Court later approved. Attorney Fustine has since accepted that appointment. Additionally, confirmation of the Debtor's prior plan of reorganization was denied. It is reported that Mr. Fustine has been meeting with the Debtor and its representatives, among other parties, to determine the next course of action.
Thursday, November 20, 2014
Wednesday, November 5, 2014
Court Grants Debtor’s Expedited Fourth Motion to Extend Time for RBS Settlement; Conditionally Appoints Chapter 11 Trustee
On or about October
27, 2014, the Debtor filed an Expedited Fourth Motion to Extend Time in
connection with its prior settlement with RBS, which was approved by Court
Order following an expedited hearing on October 31, 2014. The Order directs
the United States Trustee (“UST”) to appoint a Chapter 11 Trustee (the “Trustee”)
effective as of 8:30a.m. on November 13 (the “Deadline”), the same day on which
the Court scheduled the Debtor’s continued Plan Confirmation Hearing. If
the Debtor reports unequivocally to the Court prior to the Deadline that
settlement payments satisfactory to RBS have been made, then the Trustee’s appointment
shall not go into effect and the Plan Confirmation Hearing may proceed as
scheduled. If not, the Trustee presumably displaces the Debtor from control
of the Bankruptcy Estate.
The UST is excused from filing a motion seeking approval of its selection for Trustee until the Deadline has passed.
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