The ownership of its major asset–its patents–is in doubt.
Since filing, Plasticon has failed to comply with this Court’s Operating Order and has obtained unauthorized financing and engaged in unauthorized payment of pre-petition debt. Finally, Plasticon’s President and CEO, James N. Turek Sr., is unfit to serve as a fiduciary because he omitted key assets and transactions in his own personal bankruptcy case.
Facts
The facts of this case provide more than ample “cause” to appoint a chapter 11 trustee, and appointment of a chapter 11 trustee will be in the best interests of creditors and equity holders. Plasticon has been a business rife with mismanagement or incompetence (at a minimum). Plasticon, a publicly traded company, suffers from nonexistent to low revenues and extremely high expenses. A related party, LexReal, inexplicably and possibly impermissibly diverted loan and stock commitment proceeds. This poor performance was compounded by transfers to related parties and concealed by tardy public filings and misleading press releases.
The ownership of its major asset–its patents–is in doubt. Since filing, Plasticon has failed to comply with this Court’s Operating Order and has obtained unauthorized financing and engaged in unauthorized payment of pre-petition debt. Finally, Plasticon’s President and CEO, James N. Turek Sr., is unfit to serve as a fiduciary because he omitted key assets and transactions in his own personal bankruptcy case.
Extract from Pacer Doc 156
MOTION OF THE UNITED STATES TRUSTEE FOR APPOINTMENT OF A CHAPTER 11 TRUSTEE |
