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Microcap & Penny Stocks : PLNI - Game Over -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (11018)	8/16/2007 1:30:38 PM
From: scion	Read Replies (1) \| Respond to of 12518

7. As additional grounds the for the appointment of a Chapter 11 Trustee, attached hereto and incorporated herein as EXHIBIT 21, is a schedule detailing a series of unauthorized post-petition transfers, totaling more than $90,000, made by Debtor Pro Mold in direct violation of this Court's Interim Cash Collateral Order. 8. Most of the transfers were from Debtor Pro Mold to Debtor Plasticon or LexReal Co. LLC, an entity owned and/or controlled by James N. Turek, Sr. 9. Even more alarming is the fact that these unauthorized transfers appear to be accelerating, threatening Debtor Pro Mold's survival. 10. The transfers are contrary to the best interest of Debtor Pro Mold's secured and unsecured pre-petition and postpetition creditors, because the transfers diminish the potential recovery for these creditors and provide no true benefit to Debtor Pro Mold. 11. Previously, the payments to Debtor Plasticon were being made by Debtor Pro Mold at the rate of $7,500.00 per week. 12. In the most recent reporting from Debtor Pro Mold two payments of $7,500.00 each were made within days of each other. 13. On information and belief, all of these unauthorized transfers were made at the direction of James N. Turek, Sr. 14. Not surprisingly, the beneficiaries of these transfers were largely James N. Turek, Sr. and members of his family. 15. An action pursuant to 11 U.S.C. §549 should be commenced to recover the unauthorized payments. 16. If James N. Turek, Sr. remains in control of the Debtor no action will be taken to recover these unauthorized transfers and Debtor Pro Mold's creditors will suffer as a result. 17. 11 U.S.C. §1104(a) permits the Court to consider and effect the appointment of a Chapter 11 Trustee "at any time after the commencement of the case..." 18. 11 U.S.C. §1104(a)(1) provides that the Court shall order the appointment of a trustee: (1) For cause, including fraud, dishonesty, competence, or gross mismanagement of the affairs of the debtor of current management, either before or after the commencement of the case, or similar cause, but not including the number of holders of securities of the debtor or the amount of assets or liabilities of the debtor... 19. 11 U.S.C. §102(3) makes it clear that the use of the word "including" is not limiting, and thus any cause found by the Court is sufficient to mandate the appointment of a trustee. 20. 11 U.S.C. §1104(a) further states that the Court shall order the appointment of a trustee: (2) if such appointment is in the interests of creditors, any equity security holders, and other interests of the estate, without regard to the number of holders of securities of the debtor or the amount of assets or liabilities of the debtor... 21. To protect the interest of all of the creditors of the estate, and to preclude a debtor-in-possession from continuing to manage the business and affairs of the debtor after filing the petition, the Court should promptly and fully review any allegations that justify cause as the basis for the appointment of a Chapter 11 Trustee. 22. Moreover, even if the Court does not find cause, 11 U.S.C. §1104(a)(2) permits the appointment of a trustee if it would be in the interest of the creditors and other interests of the estate. WHEREFORE, the Murphy Entities pray that this Court order the immediate appointment of a Chapter 11 Trustee and award such other and further relief as this Court deems just and proper. ---- Extract from - Doc 182 MOTION BY THE MURPHY ENTTIES FOR APPOINTMENT OF A CHAPTER 11 TRUSTEE