A quick review of Mr. Hays’ resume, in conjunction with the manner in which he was appointed, also creates uncertainty among the equity shareholders about the impartiality of Mr. Hays and his intentions of pursuing a reorganization of the debtor. (Exh.s E,F,J). In his capacity as trustee, Mr. Hays has had little or no success in effectively reorganizing companies under Chapter 11. The vast majority of the estates he has served as trustee over were converted to a Chapter 7 plan and resulted in liquidation of the debtor. (Exh. F). The debtor in this case filed a petition for Chapter 11 reorganization and has demonstrated the intent to continue business operations. (Exh. C). Though schedules have not been filed in this case yet, the Petition indicates assets in excess of the debtor’s liabilities. (Exh. C). Again, given the manner in which Mr. Hays obtained his position, equity holders will always be left to question how earnestly he will strive for completing a reorganization plan as opposed to unnecessarily liquidating the estate or impartially assisting the SEC in resolving the pending litigation against the debtor.
Plainly, the debtor has difficulties with its cash flow, otherwise it would not have sought the protection of bankruptcy and a reorganization of its liabilities. However, given that undeniable fact, Mr. Hays has made no petition to the Court to minimize the efforts and costs of administering multiple estates by consolidating the debtor’s bankruptcy with that of its subsidiary Dicon Technologies, LLC. Mr. Hays has further failed to make other required filings with the SEC upon his appointment. Since he has been appointed trustee, he has failed to timely file an 8K to update shareholders on matters concerning his appointment as trustee or his selection of counsel to assist in the administration of the estate. Such filings are normally required by the SEC. In addition to what Mr. Hays has done, it is also what he has not done that manifests a conflict of interest in his ultimate loyalties and responsibilities.
07/26/2010 56 Memorandum of Law Amicus Brief filed by W. Darrell Whitley on behalf of Several Shareholders. (Attachments: # 1 Exhibit A# 2 Exhibit B-H# 3 Exhibit I-P) (Whitley, W.) (Entered: 07/26/2010)
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