On January 27, 2017, Michael D’Agata, Charlotte Dreibelbis, and Anthony William Packer filed an involuntary petition against TSI Holdings, LLC, thereby initiating a chapter 7 bankruptcy case currently pending before the United States Bankruptcy Court for the Western District of North Carolina as case number 17-30132. Rick Siskey allegedly operated a Ponzi Scheme through TSI Holdings, LLC.
On February 8, 2017, the Honorable J. Craig Whitley issued an Order Requiring Appointment of Interim Trustee appointing Joseph W. Grier, III (the “Trustee”) of Grier Furr & Crisp, PA as the Interim Trustee for TSI Holdings, LLC. The Order directs the Trustee to preserve property of, and prevent loss to, the bankruptcy estate and enumerates the following duties: (1) take possession of the property of TSI Holdings, LLC’s bankruptcy estate; (2) collect and analyze TSI Holdings, LLC’s financial records to identify all property lost through fraudulent transfers and/or preferences, and to bring the property back into the estate for the benefit of creditors; and (3) take all other acts necessary to preserve and protect the property of TSI Holdings, LLC’s bankruptcy estate, including taking possession of property as might be necessary to prevent any further loss to the estate.
Since his appointment as the Trustee for TSI Holdings, LLC, the Trustee has been appointed in other bankruptcy cases for entities related to TSI Holdings, LLC: WSC Holdings, LLC (Bankr. W.D.N.C. case number 17-30338); SouthPark Partners, LLC (Bankr. W.D.N.C. case number 17-30339); and Sharon Road Properties, LLC (Bankr. W.D.N.C. case number 17-30363).
This website will be the Trustee’s primary means of communication with investors and the public. The Trustee will use this site to provide updates on the status of the TSI Holdings, LLC bankruptcy (and related legal proceedings) and to post pleadings entered in such actions. Please be encouraged to post questions on this site, and the Trustee will answer those questions as time and resources allow, with a focus on fielding inquiries that have general applicability to all investors and/or the public. You may also communicate with the Trustee at firstname.lastname@example.org. Please check back periodically for additional information.
Ex Parte Motion for Authority to Enter into Relativity Hosting Service Agreement
PLEASE TAKE NOTICE that Joseph W. Grier, III, the chapter 7 trustee for TSI Holdings, LLC (the “Trustee”), by and through counsel, filed an Ex Parte Motion to Approve Relativity Hosting Service Agreement in the TSI Holdings Case (D.E. 107) on September 15, 2017. The Court subsequently granted that motion and entered the attached Order (D.E. 108) (the “Order”). The Order authorizes the Trustee to enter into an agreement with Document Technologies, LLC to host certain data acquired by the Trustee using the e-discovery software Relativity.
If you object to the relief granted in the Order, then, on or before October 4, 2017 should file a request for hearing with the Court.
A notice attaching the order is available here.
The Estate of Richard C. Siskey Wine Auction Catalogue Now Available for View Online
Siskey Wine Auction Catalogue available here
Distribution to Siskey creditors cannot occur until (1) the Bankruptcy Court makes its rulings on the allowed amount of each claim in the four bankruptcy cases; (2) the Administrator of the estate of Richard Siskey is able to determine allowed claims against that probate estate; and (3) there are funds to distribute.
Allowance of Bankruptcy Claims. The bankruptcy proof of claim deadline passed on August 23, 2017 with 262 claims having been filed across the four bankrupt cases/entities. The chapter 7 Trustee’s duties include reviewing each claim in detail and reconciling each with bank, tax, company, and other records. Though the Trustee’s office has been working through this process as claims have been filed, that process is not yet complete. After the Trustee has completed review and reconciliation of claims, he will file with the Bankruptcy Court a Report of Claims, Objections to Claims, and Recommendations Regarding Claims (a “Claim Report”). This pleading will be served upon each person who filed a claim, as well as all other parties receiving notice in the bankruptcy cases. The Claim Report will list each claim along with the Trustee’s recommendation to the Bankruptcy Court. The Claim Report will be accompanied by a Notice of Opportunity for Hearing setting forth a period of time for claimants to file an objection or other response to the Claim Report. There will be a hearing set in the Bankruptcy Court for consideration of any filed responses to the Claim Report. Ultimately, the Bankruptcy Court will make a ruling on the allowed amount of each claim for purposes of the bankruptcy process.
Allowance of Probate Estate Claims. In addition to claims against the four bankruptcy entities, there are additional persons who have claims against the estate of Richard Siskey which are not claims against any of the bankrupt entities. The deadline for filing claims against the estate of Richard Siskey ran on August 24, 2017 and the Trustee understands that Lane Williamson, the Administrator of the Estate of Richard Siskey, is reviewing those claims. Some of those claims will need to be litigated in the appropriate court.
Securing Funds To Distribute. The Trustee continues to work with Diane Siskey and Lane Williamson, the Administrator of the Estate of Richard Siskey, to secure funds to distribute to those holding allowed claims in the bankruptcy cases or in the probate estate of Richard Siskey. Mrs. Siskey has placed life insurance proceeds of $37,495,257.43 in an escrow account and the trustee is holding in escrow funds from the sale of the Siskey home and certain personal property of Mrs. Siskey totaling $1,898,221.29. Mrs. Siskey has expressed her desire that those funds in escrow be used to satisfy claims of creditors of the four bankruptcy entities and the Richard Siskey probate estate, but also has to resolve certain other claims against her, such as claims made in a recent lawsuit. Release of those funds requires either the formal consent of Mrs. Siskey or litigation. In addition, Mr. Williamson is holding funds from the sale of certain assets of Richard Siskey.
Unfortunately, this process may take some time. Know that the Trustee and the Administrator are doing everything possible to resolve claims and secure funds to distribute on those claims as quickly and efficiently as possible. The Trustee asks for the patience of those with claims as we work through this process.
Ex Parte Motion for Authority to Establish Escrow Account With Rabobank
PLEASE TAKE NOTICE that Joseph W. Grier, III, the chapter 7 trustee for TSI Holdings, LLC (the “Trustee”), by and through counsel, filed an Ex Parte Motion for Authority to Establish Escrow Account With Rabobank In TSI Holdings Case (D.E. 102) on August 21, 2017. The Court subsequently granted that motion and entered the attached Order (D.E. 103) (the “Order”). The Order authorizes the Trustee to use an account with Rabobank as an escrow account to hold property that is not yet property of the bankruptcy estate.
If you object to the relief granted in the Order, then, on or before September 6, 2017, you should file a request for hearing with the Court.
NoEEPR – Ex_Parte_Motion_to_Use_Rabobank_for_Escrow_Account
DE103 – EP Order Authorizing Rabobank Escrow Account
Ex Parte Motion for Authority to Enter Into Escrow Agreement and Act as Escrow Agent
PLEASE TAKE NOTICE that Joseph W. Grier, III, the chapter 7 trustee for TSI Holdings, LLC (the “Trustee”), by and through counsel, filed an Ex Parte Motion for Authority to Enter Into Escrow Agreement and Act as Escrow Agent (D.E. 93) on August 3, 2017. The Court subsequently granted that motion and entered the attached Order (D.E. 94) (the “Order”). The Order authorizes the Trustee to act as escrow agent for the net proceeds generated from the sale of the real property formerly used by Rick Siskey as his primary residence.
If you object to the relief granted in the Order, then, on or before August 18, 2017, you should file a request for hearing with the Court.
NoEEPR – Ex_Parte_Motion_to_Enter_Into_Escrow_Agreement_and_Act_as_Escrow_Agent
Sharon Road Properties, LLC Tax Returns
The Trustee has caused 2016 Federal and State Partnership Income Tax Returns to be prepared and filed for Sharon Road Properties, LLC. The Trustee has mailed the owners of Sharon Road Properties, LLC Schedule K-1s.