Update After July 25, 2018 Court Hearings

On Monday June 25, 2018 the Court considered the Trustee’s Motion for Approval of Interim Distribution (the “Distribution Motion”), and the Trustee’s Motion for Order (I) Terminating Joint Administration of Sharon Road Properties, LLC Case (II) Converting the Remaining Cases to Chapter 11 and (III) Providing Miscellaneous Relief (the “Motion to Convert”).   The Court denied the Motion to Convert indicating that it would not approve the releases proposed in the draft Plan.   Because the Distribution Motion was conditioned upon the allowance of the Motion to Convert, it was also denied.   The Trustee is continuing to work with all parties involved to work towards a workable global solution for creditors of TSI Holdings, LLC,  WSC Holdings, LLC and SouthPark Partners, LLC (the “Ponzi Debtors”).

The Court did state that it would separate the Sharon Road Properties, LLC bankruptcy case from the Ponzi Creditor cases for bankruptcy administration purposes.

The Trustee’s Motion for Order Estimating Claims for Stone Street Partners, LLC, Paul Porter and Dawn King were not heard as it became moot when the Court denied the Distribution Motion.

The Trustee received documents from Stone Street Partners, LLC on June 21 and 22nd,  2018 and therefore did not proceed with the Motion to Compel Stone Street Partners to respond to Discovery Requests.

The Court continued the hearing on the Trustee’s Application to Approve Interim Compensation to Grier, Furr & Crisp, PA until July 19, 2018 at 2:00 pm.

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