Doc 287
OCR
IN RE:
CASE NO. 07-50935
PRO MOLD, INC.,
Debtor
CHAPTER 11
MOTION TO CONTINUE HEARING ON: I. MOTION FOR RELIEF FROM STAY AND RELATED DEADLINES; II. MOTION FOR IMMEDIATE SURRENDER OF NONRESIDENTIAL REAL PROPERTY; AND III. MOTION TO CONVERT
Chapter 11 Trustee Kenneth Henry ("Trustee Henry") files this Motion to Continue Hearing on: I. Motion for Relief from Stay and Related Deadlines; II. Motion for Immediate Surrender of Nonresidential Real Property; and III. Motion to Convert and in support thereof respectfully states the following:
1. The Court has jurisdiction in regard to this matter pursuant to 28 U.S.C. § 1334 and 28 U.S.C. § 157 and the Local Rules for the United States District Court for the Eastern District of Kentucky.
2. This matter is a core proceeding under 28 U.S.C. § 157(b)(2)(D).
3. On May 16, 2007, Debtor Pro Mold, Inc. ("Debtor Pro Mold"), filed its Voluntary Chapter 11 Petition for Relief in the United States Bankruptcy Court for the Eastern District of Kentucky, Lexington Division ("Court").
4. On May 31, 2007, the Court signed and the Clerk entered the Agreed Order on Debtor's Amended Emergency Motion to Use Cash Collateral ("Agreed Emergency Cash Collateral Order"). (Docket No. 53).
5. On June 15, 2007, Pro Plas LLC, a Missouri limited liability company, the Murphy Trust, JPM and 10315 LLC (collectively "the Murphy Entities") filed and served their Motion for Relief from Automatic Stay and an Exhibit Summary. (Docket No. 77) ("Motion for Relief').
6. On September 27, 2007, Lessor 10315 LLC filed the Motion for Immediate Surrender of Nonresidential Real Property and it was scheduled to be heard on October 11, 2007.
7. On or about October 5, 2007, Trustee Henry was appointed as the Chapter 11 Trustee.
8. On November 1, 2007, the Murphy Entities filed their motion to convert the instant case to a Chapter 7 case (Docket No. 272) ("Motion to Convert").
9. The Agreed Emergency Cash Collateral Order remains in effect.
10. Hearings on the Motion for Immediate Surrender of Nonresidential Real Property, Motion for Relief and Motion to Convert were continued to November 19, 2007.
11. Trustee Henry and the Murphy Entities are engaged in settlement negotiations that may result in an agreed sale of the Debtor's business as a going concern.
12. Until the Trustee's appointment, the Debtor complied with the Agreed Emergency Cash Collateral Order.
13. Since the Trustee's appointment, the Trustee has complied with the Agreed Emergency Cash Collateral Order.
14. The Murphy Entities cite the following as cause for conversion of this case to Chapter 7.
a. While in Chapter 11, Debtor Pro Mold has not filed any of its monthly operating reports on time.
b. While in Chapter 11, Debtor Pro Mold has not filed operating reports for July, August, or September 2007.
c. While in Chapter 11, Debtor Pro Mold has not filed its 2006 federal or state income tax returns.
d. While in Chapter 11, Debtor Pro Mold did not file a Chapter 11 Plan and Disclosure Statement within 120 days of filing its bankruptcy.
e. While in Chapter 11, Debtor Pro Mold allowed the lease on its factory in St. Louis to be rejected by operation of law.
f. While in Chapter 11, Debtor Pro Mold repeatedly violated this Court's Chapter 11 Operating Order and Cash Collateral Order.
15. The appointment of the Trustee has stopped the misappropriation of funds, operating reports for July and August have been filed, and a Disclosure Statement and Plan have been filed by the Debtor.
16. The Trustee has only been appointed for approximately 30 days and is currently in the process of retaining counsel. In that time, the Trustee has:
1. Reduced the expenses of the Debtor by reducing the Debtor's work force.
2. Visited the two major customers of the Debtor.
3. Met with two different brokers on marketing the business as a going concern; and
4. Monitored the Debtor's financials on a daily basis while developing pro forma financials for the Debtor through January 31, 2007.
17. The Trustee believes that within 90 days the Trustee will be able to sell the Debtor's business as a going concern for in excess of the amount owed to the Murphy Entities.
18. Alternatively, the Trustee has had insufficient time to evaluate the merits of the Debtor's Plan.
19. The Trustee has had insufficient time to respond to the Murphy Entities motions. The Trustee is not yet represented by counsel. Additionally, the Trustee has had insufficient time to analyze the motions and the stipulations proposed by the Murphy Entities which comprise a total of 123 pages and 665 paragraphs. Moreover, the Motion for Relief is supported by no fewer than 112 Exhibits and the Trustee has not had sufficient time to review these exhibits.
20. Finally, the Murphy Entities are adequately protected for the present due to the appointment of the Trustee and compliance with the Agreed Emergency Cash Collateral Order and will not be harmed by a 90 day continuance.
WHEREFORE, Chapter 11 Trustee Kenneth Henry requests that the Court continue the hearing on the Motion for Relief from Stay and related deadlines, the Motion for Immediate Surrender of Nonresidential Real Property and the Motion to Convert for ninety (90) days and for such other relief as the Court deems just.
By:
Kenneth C. Henry Chapter 11 Trustee
NOTICE
Please take notice that the above Motion will come on to be heard at the convenience of the court.
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Elliot Ness...coiled and ready!!! |
