09/25/2007 229 Emergency Motion to Suspend Scheduling Order, filed by Plasticon International, Inc.. Hearing scheduled for 9/28/2007 at 02:30 PM at Lexington Courtroom, 3rd Floor. (Kennedy, Ellen) (Entered: 09/25/2007)
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Doc 229
IN RE:
PLASTICON INTERNATIONAL, INC.
Debtor.
Case No. 07-50934
Judge William S. Howard
Chapter 11
EMERGENCY MOTION TO SUSPEND SCHEDULING ORDER
Comes the Debtor, Plasticon International, Inc. (“Debtor”), by counsel, and for its emergency motion to suspend the deadlines in the Court’s Scheduling Order dated August 31, 2007, [D.E. 185], states as follows:
Through the United States Trustee’s Motion to Appoint Chapter 11 Trustee (the “UST Motion”), the United States Trustee raises a multi-faceted attack on the Debtor’s operations and post-petition conduct under the control of the current president and designated corporate representative, James N. Turek, Sr. (“Turek”). Having reviewed both the Trustee’s documents and arguments, it is apparent to the Debtor that issues surrounding Turek’s management of the Debtor has been and will continue to be a costly detour in this case and its sister case, In Re ProMold, Case No. 07-50935.
Due to the increasing responsibilities that have been placed on Turek, the Debtor, through Turek, has determined that the time and resources devoted to fully objecting to the UST Motion, as well as preparation for a trial on this matter on October 3, 2007, is an avoidable strain on the Estate. Turek, acting in his capacity as president and corporate representative of the Debtor, has followed advice of counsel to remove himself from the operations of the Debtor and make an application with the Court to employ a chief restructuring officer to assume the duties in taking the Debtor through the Chapter 11 process.
By taking this action, the Debtor submits that the United States Trustee’s objections to Turek’s control of the Debtor will be resolved, and the UST Motion asking for the appointment of a Chapter 11 Trustee rendered moot by virtue of Turek no longer being in control of or making decisions for the Debtor. The Debtor has made great strides in the past few weeks in getting this case back on track. In addition to struggling under the burdensome discovery related to the Murphy Entities’ Motion for Relief from the Automatic Stay filed in In re Pro Mold, the Murphy Entities and UST Motions to Appoint a Chapter 11 Trustee, the Debtor has filed the following in In re Pro Mold:
• Substantial amendments to previously filed Schedules and Statement of Financial Affairs [D.E. #210];
• Operating Report from May through June 30, 20071 [D.E. #211];
• Plan of Reorganization [D.E. #212];
• Disclosure Statement [D.E. #213];
• Exhaustive Analysis of Murphy Entities documents in Support of Debtor’s Objection to Murphy Entities’ Motion for Relief from the Automatic Stay [D.E. # 214].
Freed of the responsibilities related to preparing for the October 3, 2007 hearing on the UST Motion, the Debtor anticipates that it will make similar progress in this case.
The Debtor asserts to the Court that the direction in which it hopes to proceed is to the resolution and completion of a Chapter 11 Plan under the guidance of a chief restructuring officer.
1 Pro Mold anticipates that its Monthly Operating Reports for July and August will be filed within the week.
Appointing a Chapter 11 Trustee and accompanying counsel adds another layer of administrative expense and delay to moving this case. In light of Debtor’s pending Application to Employ a Chief Restructuring Officer, appointing a Chapter 11 Trustee just to remove Turek’s control of the Debtor is extreme in light of the progress the Debtor has made and will continue to make under a Chief Restructuring Officer.
Even the United States Trustee must recognize that the best possible result from a Chapter 11 Trustee would be the Court’s confirmation of a plan of reorganization. The parties in the case should not have to endure another delay. A plan of reorganization has been filed, and the Debtor requests the Court’s permission to conserve its resources and focus its efforts on working through its Chief Restructuring Officer to solicit support for its plan rather than continue to fight the UST Motion which addresses a problem the Debtor has solved.
WHEREFORE, the Debtor, Pro Mold, Inc., requests the Court to suspend the Court’s Scheduling Order.
NOTICE
Notice is hereby given that the foregoing shall be brought on for hearing before the Honorable William S. Howard, Judge, U. S. Bankruptcy Court, in the United States Bankruptcy Courtroom, Third Floor, Community Trust Bank Building, 100 East Vine Street, Lexington, Kentucky on Friday, September 28, 2007, at the hour of 2:30 p.m., or as soon thereafter as counsel may be heard.
FOWLER MEASLE & BELL PLLC
/s/ Ellen Arvin Kennedy
Ellen Arvin Kennedy, Esq.
Timothy A. West, Esq.
300 West Vine Street, Suite 600
Lexington, KY 40507-1660
(859) 252-6700
(859) 255-3735 fax
EAKennedy@FowlerLaw. com
TWWest@FowlerLaw. com
ATTORNEYS FOR DEBTOR, PLASTICON INTERNATIONAL, INC.
CERTIFICATE OF SERVICE
I hereby certify that the foregoing was served this the 25th day of September, 2007, electronically in accordance with the method established under this Court’s CM/ECF Administrative Procedures and Standing Order dated July 25, 2002 upon all parties in the electronic filing system in this case and was served upon those listed on the Master Service List No. 1, by first class postage paid mail, electronic service or via email.
_/s/ Ellen Arvin Kennedy________
ATTORNEY FOR DEBTOR |
