IS THIS IT????
THURSDAY, APRIL 05, 2012 10:00 AM
Proceedings:
COURT: ARE THERE ANY UPDATES?
MR. SPARKS STATES HE HAS SPOKEN WITH SEVERAL CREDITORS, AND THE DEBTOR HAS FILED SUPPLEMENTAL
DOCUMENTS. THERE HAVE BEEN NO OBJECTIONS TO THE USE OF $275,000 FOR 60 DAYS. THE DEBTOR HAS FILED
BUDGETS, AND HAS A NUMBER OF CONTRACTS WHICH WILL GENERATE IMMEDIATE CASH FLOW. THE PLAN WILL BE ON
FILE WITHIN 30 DAYS. HE FEELS WITH THE CASH FLOW PROJECTIONS PROVIDED TO EVERYONE, THE DEBTOR WILL
GENERATE ABOUT $600,000 PER YEAR.
COURT: WHAT IS THE LONG-TERM OUTLOOK FOR THIS CORPORATION?
MR. SPARKS STATES $275,000 WILL GET THE MACHINES OUT THE DOOR, AND MONEY WILL BE GENERATED. FURTHER
DISCUSSION IS HELD.
COURT: WHY NOT ADVANCE THE PLAN AND GET IT ON FILE IN A WEEK? IF THERE IS A VIABLE PLAN, LET'S GET IT ON
FILE.
MR. SPARKS STATES HE WILL HAVE A PLAN ON FILE WITHIN 14 DAYS. THE DEBTOR NEEDS THE MONEY NOW TO GET
THE PRODUCT OUT THE DOOR.
MR. LAIRD STATES HE REPRESENTS A FORMER EMPLOYEE, AND HE HAS FILED A LAWSUIT FOR UNPAID WAGES. HE HAS
A CONCERN ABOUT THE $275,000, AND FEELS THIS IS A BLUFF.
THE COURT IS NERVOUS RELEASING MONEY UNTIL THERE HAS BEEN A FULL-BLOWN HEARING TO DETERMINE THE
NATURE OF THE CASH. THE COURT DOESN'T WANT TO MOVE TOO QUICKLY ON THIS.
MR. SKLAR STATES HIS CLIENT HAS $930,000 IN UNSECURED DEBT. HE FEELS THERE IS SOME POTENTIAL IN THIS
COMPANY, AND AGREES THAT A PLAN SHOULD BE FILED SOONER, RATHER THAN LATER.
MS. LAVIGNA STATES HER CONCERNS, AND MOST OF THEM WERE ADDRESSED BY THE ADDITIONAL INFORMATION
SUPPLIED. SHE DISCUSSES THE OFFERING, AND THE DIFFERENCE IN THE TYPES OF OFFERINGS.
MR. SPARKS INTERJECTS COMMENTS. IF THERE IS NO MONEY, THE DEBTOR CAN'T GET THE PRODUCT OUT THE DOOR,
AND GENERATE MONEY TO PAY THE CREDITORS.
MR. WATSON STATES MR. BRUMFIELD IS INVOLVED IN A CHAPTER 7 IN SOUTHERN CALIFORNIA. HE REVIEWS THE PAST
HISTORY OF THE DEBTOR. THE U. S. TRUSTEE HAS SOME SIGNIFICANT CONCERNS. HE AGREES WITH THE COURT
THAT IF MONEY IS ADVANCED, IT WOULD HAVE TO BE DETAILED CLEARLY.
COURT: AFTER FURTHER DISCUSSION, THE DEBTOR'S MOTION IS DENIED, WITHOUT PREJUDICE. MR. SPARKS IS TO
GO BACK AND FIND ANOTHER APPROACH TO OBTAIN FINANCING TO GET THIS MOVING. IT MAY BE NECESSARY TO
INVOLVE THE CHAPTER 7 TRUSTEE IN CALIFORNIA. THE COURT WILL HEAR ANY ACCELERATED HEARING THE DEBTOR
WANTS TO PUT ON.
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