Summary of 11/13 Omnibus Hearing Date
On November 13, 2006, the following matters were scheduled to be heard by the Court:
1) United States Trustees' motion to appoint a Chapter 11 trustee (the "Trustee Motion"),
2) Debtors' application to retain Traxi, LLC ("Traxi") to provide crisis management services to the Debtors, employ Perry Mandarino as Chief Restructuring Officer of the Debtors ("CRO"), and establish a three member Board of Directors consisting of Zudhi Karagzoji and two independent board members to oversee the Debtors reorganization (the "Traxi Motion"),
3) Secured lender's motion to convert the Debtors’ cases to cases under Chapter 7 (the "Conversion Motion");
4) Debtors' application to retain Sullivan and Company, Inc. as financial advisor to the Debtor;
5) Motion to compel Debtor to assume or reject executory contracts on behalf of Bond Safeguard Insurance Co. and Lexon Insurance, Co.;
6) Continued application regarding Debtors' authority to continue to sell homes in the ordinary course.
At the hearing, the Court adjourned the Debtors' application to retain Sullivan and Company, Inc. as Financial Advisor to the Debtors, the motion to compel Debtor to assume or reject executory contracts on behalf of Bond Safeguard Insurance Co. and Lexon Insurance, Co., and the Application regarding Debtors' authority to continue to sell homes in the ordinary course until the next omnibus hearing date on November 27, 2006 at 1:00 pm.
The Court denied the Conversion Motion without prejudice, determining that at this early stage in the reorganization process, the appointment of a chapter 11 trustee was not appropriate. The Court did however, approve the Traxi Motion and the appointment of the CRO. In granting the Traxi Motion, the Court required the Debtors to identify the independent board members and obtain affidavits certifying that the proposed board members do not have a relationship with the Debtors or any creditors and do not possess an interest in these bankruptcy cases.
The Committee selected two individuals, William Weber, the Principal and CEO of Weber Homes, having its principal place of business in Basking Ridge, New Jersey, and James Corbett, a Division President for D.R. Horton, Inc., a developer of distinctive detached and attached housing communities to serve as the independent board members. Affidavits disclosing their disinterestedness will be filed with the Court shortly.
The next omnibus hearing date is scheduled for Monday, November 27, 2006 at 1:00 p.m.
1) United States Trustees' motion to appoint a Chapter 11 trustee (the "Trustee Motion"),
2) Debtors' application to retain Traxi, LLC ("Traxi") to provide crisis management services to the Debtors, employ Perry Mandarino as Chief Restructuring Officer of the Debtors ("CRO"), and establish a three member Board of Directors consisting of Zudhi Karagzoji and two independent board members to oversee the Debtors reorganization (the "Traxi Motion"),
3) Secured lender's motion to convert the Debtors’ cases to cases under Chapter 7 (the "Conversion Motion");
4) Debtors' application to retain Sullivan and Company, Inc. as financial advisor to the Debtor;
5) Motion to compel Debtor to assume or reject executory contracts on behalf of Bond Safeguard Insurance Co. and Lexon Insurance, Co.;
6) Continued application regarding Debtors' authority to continue to sell homes in the ordinary course.
At the hearing, the Court adjourned the Debtors' application to retain Sullivan and Company, Inc. as Financial Advisor to the Debtors, the motion to compel Debtor to assume or reject executory contracts on behalf of Bond Safeguard Insurance Co. and Lexon Insurance, Co., and the Application regarding Debtors' authority to continue to sell homes in the ordinary course until the next omnibus hearing date on November 27, 2006 at 1:00 pm.
The Court denied the Conversion Motion without prejudice, determining that at this early stage in the reorganization process, the appointment of a chapter 11 trustee was not appropriate. The Court did however, approve the Traxi Motion and the appointment of the CRO. In granting the Traxi Motion, the Court required the Debtors to identify the independent board members and obtain affidavits certifying that the proposed board members do not have a relationship with the Debtors or any creditors and do not possess an interest in these bankruptcy cases.
The Committee selected two individuals, William Weber, the Principal and CEO of Weber Homes, having its principal place of business in Basking Ridge, New Jersey, and James Corbett, a Division President for D.R. Horton, Inc., a developer of distinctive detached and attached housing communities to serve as the independent board members. Affidavits disclosing their disinterestedness will be filed with the Court shortly.
The next omnibus hearing date is scheduled for Monday, November 27, 2006 at 1:00 p.m.
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