How ludicrous is this!!!!!!!!
6. One of the Debtor’s wholly-owned subsidiaries is United Western Bank (the “Bank”). On January 21, 2011, thirteen months before this bankruptcy case was filed, the Bank failed and all of the Bank’s assets were placed into an FDIC receivership. The Trustee received correspondence from a former employee and director of United Western Bancorp, Inc. asserting the FDIC failed to account for $150,000,000 in capital owned by the Bank at the time of the takeover, and demanding the Trustee pursue this purported asset. Since his appointment, the Trustee has monitored the United Western Bank receivership. As of September 30, 2013, the UnitedWesternBankreceivershiphadanegativenetworthof$346,978,000. AsofSeptember 30, 2016, the United Western Bank receivership’s financial picture had improved but still showed a negative net worth of $168,140,000. Even if the former employee/director were correct that the FDIC failed to properly account for all of the $150,000,000 capital, the United Western Bank receivership would still have a negative net worth of $18,140,000. Further, JP Morgan Chase Bank asserts a security interest in the Debtor’s United Western Bank stock in the amount of at least $13,640,099.60. “The focus of a trustee’s duties is the collection and distribution of estate assets for the benefit of creditors.” In re Ebel, 338 B.R. 862, 873 (Bankr. D. Colo. 2005) (quoting In re Poage, 92 B.R. 659, 662 (Bankr. N.D. Tex. 1988) (“Although a Chapter 7 trustee is a fiduciary obligated to treat all parties fairly, his primary duty is to the estate’s unsecured creditors.”). “Thepurposeto beserved,therefore, must relatetothe Trustee’sdutytothecreditors tocollectanddistributeassets. ItcannotbeaproperpurposefortheTrusteetoexpendestateassets objecting . . . if no benefit would otherwise accrue to the . . . creditors.” In re Ebel, 338 B.R. at 873. Because the United Western Bank receivership remains hopelessly insolvent and any correction of the alleged error would not render the United Western Bank receivership estate solvent thereby benefitting the Debtor’s unsecured creditors, the Trustee does not believe it a proper use of estate assets to pursue the alleged error.
