Replies to post #325102 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

It's tough to overstate the urgency of this request by the US Trustee.

Since I didn't know anything about US Trustees vs. appointed trustees I looked at Wikipedia for some help:

"The United States Attorney General generally appoints a separate United States Trustee for each of twenty-one geographical regions for a five year term."

"The U.S. Trustee's office conducts the first meeting of creditors in a Chapter 11 case. Most Chapter 11's do not require the appointment of a trustee: however, in those cases which do, the U.S. Trustee oversees the appointed trustee's handling of the case and, for good cause, can seek the removal or replacement of the trustee. The U.S. Trustee may not, however, serve as the case trustee in Chapter 11. Along with the creditors committees, the U.S. Trustee acts as the primary "watchdog" to ensure compliance with the Bankruptcy Code in cases where no trustee has been appointed."

So the US Trustee, the US Attorney General's regional representative in bankruptcies, is clearly expressing his concern that the court's decision to stay its order to appoint a trustee has put Dicon in jeopardy unnecessarily (and based on the expectation that SPNG itself was about to file Chapter 11, seeking a change of venue in the Dicon case to NY, which never happened) and that the judge should reverse the stay order.

I expect the court to respond very quickly, probably with another telephone hearing. The US Trustee's request was filed yesterday.

In fact, I just checked and found this:
07/07/2010 30 Notice of Hearing (RE: related document(s) 29 ). Hearing to be held on 7/9/2010 at 11:00 AM STATESBORO COURTHOUSE for 29 , (Barnard, Linda) (Entered: 07/07/2010)

Apparently the creditors in the bankruptcy also filed something in support of the US Trustee's request (docket#33).

and also, this (unrelated to the request):
07/08/2010 35 Meeting of Creditors 341(a) meeting to be held on 8/2/2010 at 02:00 PM at SAVANNAH MEETING ROOM. Last day to oppose discharge or dischargeability is 10/1/2010. Proofs of Claims due by 11/1/2010. Government Proof of Claim due by 12/15/2010. (Gordon, Lisa) (Entered: 07/08/2010)

[chipgiii]

Normally they must already be at least 30 days late to have the insurance suspended. Most states and most insurance companies have a 30 day grace period.