Chancellor Group Inc (CHAG)

[mdigiova]

Here's CapWest's objection:

Don D. Sunderland, TSB #19511800
MULLIN HOARD & BROWN, LLP
500 South Taylor, Suite 800, LB #213
P.O. Box 31656
Amarillo, TX 79120-1656
Tel: [phone]
Fax: [phone]
[e-mail]
www.mullinhoard.com
Attorneys for CapWest Resources, Inc.
and Western National Bank
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF TEXAS
AMARILLO DIVISION
IN RE: §
§
CHANCELLOR GROUP, INC., § NO. 07-20512-11
§
GRYPHON FIELD SERVICES, LLC, and § NO. 07-20511-11
§
GRYPHON PRODUCTION CO., § NO. 07-20510-11
LLC, §
§
Debtors. §
OBJECTION TO MOTION FOR ORDER REDUCING NOTICE PERIOD FOR
HEARING ON DEBTORS’ FIRST AMENDED DISCLOSURE
STATEMENT AND OF THE RIGHT TO OBJECT
Now comes, CapWest Resources, Inc. (“CapWest”) and Western National Bank
(“WNB”) secured creditors and parties-in-interest in these bankruptcy cases and objects to the
Motion for Order Reducing Notice Period for Hearing on Debtors’ First Amended Disclosure
Statement and of the Right to Object (the “Motion”) that debtors Chancellor Group, Inc.,
Gryphon Field Services, LLC and Gryphon Production Co., LLC filed in those bankruptcy cases
on April 21, 2008. In support of this objection, CapWest and WNB will show the following:
1. Debtors, in these bankruptcy cases, each filed a Disclosure Statement Dated
March 1, 2008 (“Debtors’ Disclosure Statements”). Debtors, in connection with filing of
Debtors’ Disclosure Statements neither scheduled a hearing on Debtors’ Disclosure Statements
nor provided notice to parties-in-interest of any right to object to Debtors’ Disclosure Statements.
Objection to Motion for Order Reducing Notice Period
for Hearing on Debtors’ Amended Disclosure Statement -- Page 2 of 3
J:\04792\03\014.doc
Consequently, neither CapWest or WNB, nor to movants’ knowledge, any other party, responded
to Debtors’ Disclosure Statements.
2. Inasmuch as debtors did not proceed to obtain bankruptcy court approval of
Debtors’ Disclosure Statements so as to begin the confirmation process, CapWest prepared and
on April 2, 2008, filed its Chapter 11 Disclosure Statement to Chapter 11 Plan of Reorganization
(the “CapWest Disclosure Statement”) and a related Chapter 11 Plan of Reorganization (the
“CapWest Plan”). CapWest immediately scheduled a hearing date for approval of the CapWest
Disclosure Statement for May 15, 2008 at 1:30 p.m. and on April 3, 2008 filed and served upon
all creditors and parties-in-interest a Notice of Filing of Creditor’s Disclosure Statement and
Chapter 11 Plan, and of Right to Object (the “CapWest Notice of Hearing”) thereby providing to
all parties in excess of the required twenty-five (25)-day notice and opportunity to object to
CapWest’s Disclosure Statement.
3. Debtors, by the Motion, seem to imply they have been damaged by CapWest’s
filing of the CapWest Disclosure Statement and CapWest Plan, and by CapWest’s serving the
CapWest Disclosure Statement, CapWest Plan, and CapWest Notice of Hearing pursuant to
applicable rules. CapWest has not solicited any votes for the CapWest Plan. CapWest has
merely filed and served the CapWest Disclosure Statement, CapWest Plan, and CapWest Notice
of Hearing to advise of the hearing seeking approval of the CapWest Disclosure Statement. Any
damage resulting to debtors has resulted because of debtors’ failure to proceed to seek approval
of Debtors’ Disclosure Statements.
4. Debtors, in the Motion, offer no justification for shortening the required 25-day
period for notice and an opportunity to object to Debtors’ Disclosure Statements. Simply
because debtors desire to be on the same confirmation time line as is CapWest with respect to the
Objection to Motion for Order Reducing Notice Period
for Hearing on Debtors’ Amended Disclosure Statement -- Page 3 of 3
J:\04792\03\014.doc
CapWest Disclosure Statement and CapWest Plan is a wholly inadequate cause to shorten notice
under Bankruptcy Rule 9006(c)(1).
WHEREFORE, CapWest Resources, Inc. and Western National Bank respectfully
request the court to set a hearing on Debtors’ Motion for Order Reducing Notice Period for
Hearing on Debtors’ First Amended Disclosure Statement and of the Right to Object, and to
deny the relief requested by Debtors.
Dated: April 22, 2008
Amarillo, Texas