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implication

11/24/14 5:16 PM

#28630 RE: johnny smartask #28629

They were no more broke September 24th than they've ever been. Being broke is what startups do.

So how does this change Visions prospect as a viable entity... How does any of the last 2 months help?


One must ask why this bluff to begin with. Then one must ask why they suddenly filed for emergency withdrawal of counsel only to never file for substitute.

The order says they cannot file chapter 11 again it says nothing about liquidation.


Incorrect. As Judge Kwan states:

IT IS FURTHER ORDERED that Debtor’s failure to comply with this order may
result in the dismissal of this case with a 180-day bar to filing another bankruptcy case.


Kwan had the option to choose a conversion to Chapter 7. He didn't. And this was after:

The Court having considered all pleadings submitted with regard to the Motion; having
heard and considered the arguments and representations of the parties during the hearing
; and for the reasons stated on the record during the hearing, the Court has found good cause under Rule
3-700 of the California Rules of Professional Responsibility and Rule 2091-1 of the Local
Bankruptcy Rules to grant the Motion.

IT IS ORDERED that:
1. The Motion is granted and Marshack Hays LLP shall no longer be counsel for
Debtor and Debtor In Possession, Vision Industries Corp., dba Vision Motor Corporation
effective November 18, 2014


So he agrees to allow the termination of Marshack Hays counsel after considering the arguments and representations. Knowing this, he then chooses dismissal over Chapter 7 conversion should Vision fail to have valid declaration for never obtaining substitute representation. Seems to me like his jurisprudence would not opt for a mere dismissal if:

this will IMO definitely propel chapter 7 proceedings.


After all, if dismissed, and no bankruptcy filings for at least 180 days. How they gonna keep the lights on Judge? Guess we'll have to find out.