10000002178

12-50073-a998 Doc#367 Filed 10/23/12 Entered 10/23/12 10:15:52 Main Document Pg 1
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In re:
UNITED STATES BANKRUPTCY COURT
WESTERN DISTRICT OF TEXAS
SAN ANTONIO DIVISION
Chapter 11

DELTA PRODUCE, L.P.
1
, Case No. 12-50073-LMC

Debtors Jointly Administered
MOTION TO AMEND ORDER GRANTING JOINT MOTION OF SOME P ACA TRUST
BENEFICIARIES AND THE DEBTORS FOR USE OF THE PACA TRUST FUNDS
EMERGENCY RELIEF HAS BEEN REQUESTED, IF THE COURT CONSIDERS THE
MOTION ON AN EMERGENCY BASIS, THEN YOU WILL HAVE LESS THAN 21 DAYS
TO ANSWER. IF YOU OJECT TO THE REQUESTED RELIEF OR IF YOU BELIEVE
THAT THE EMERGENCY CONSIDERATION IS NOT WARRANTED, YOU SHOULD
FILE AN IMMEDIATE RESPONSE.
TO THE HONORABLE LEIF M. CLARK, UNITED STATES BANKRUPTCY JUDGE:
Now Comes Delta Produce, L.P., Superior Tomato-Avocado, Ltd., Atled, Ltd., and Staci
Properties, Ltd. (collectively, the "Debtors"), to file this its Motion to Amend Order Granting
Joint Motion of Some PACA Trust Beneficiaries and the Debtors for Use of the PACA Trust
Funds (the "Motion to Amend") and in support of the Motion to Amend, Debtors would
respectfully show unto the Court as follows.
I. JURISDICTION AND VENUE
1.1 The Court has jurisdiction to consider the Sale Motion pursuant to 28 U.S.C.
157 and 1334. Venue of the proceeding is proper in the district pursuant to 28 U.S.C. 1404
and 1409. It is a core proceeding pursuant to 28 U.S.C. 157(b)(2).
1
Debtors are the following entities: Delta Produce, L.P.- Case No. 12-50073-LMC-11, Superior Tomato-Avocado,
Ltd.- Case No. 12-50074-LMC-11, Atled, Ltd.- Case No. 12-50075-LMC-11 and Staci Properties, Ltd.- Case No.
12-50110-LMC
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1.2 The statutory predicate for the relief requested herein is 11 U.S.C. 105 of the
Bankruptcy Code.
II. FACTUAL BACKGROUND AND ARGUMENT
2.1 On January 3, 2012 (the "Petition Date") the Debtors, (with the exception of Staci
Properties, Ltd. which filed its Chapter 11 case on January 9, 2012) filed voluntary petitions for
relief under Chapter 11 of Title 11 of the United States Code 11 U.S.C. 101 - 1532 (as
amended), (the "Bankruptcy Code").
2.2 The Debtors are Debtors-in-Possession pursuant to 1107 and 1108 of the
Bankruptcy Code. No Creditors Committee has been appointed to this case by the United States
Trustee. Further, no trustee or examiner has been requested or appointed. A hearing on the
Chapter 11 Trustee's Certificate ofNon-Compliance is set for October 30, 2012. At this hearing
the Court will determine whether to convert these cases under Chapter 7 of the United States
Bankruptcy Code. Additionally, on that date, the Court will hear a Motion to Sell Real Property
consisting of one of the Debtors' main assets.
2.3 On January 26, 2012, the Court entered the Order Granting Joint Motion of Some
PACA Trust Beneficiaries and the Debtors for the Use of the PACA Trust Funds (the "PACA
Order") [Dkt. No. 53]. In paragraph 17, the PACA Order provides that Walter Scott Jensen and
either Mr. Richard Garza or Ms. Jane Castillo are the only parties allowed to draw checks on the
Debtors' PACA Trust Accounts.
2.4 Delta Produce, LP ("Delta") and Superior Tomato-Avocado, Ltd. ("Superior")
each opened up separate checking accounts with Frost Bank at the inception of the case for the
sole purpose of holding and disbursing P ACA Trust Funds (collectively, the "P ACA Trust
Accounts"). Per the P ACA Order, Scott Jensen and Richard Garza currently are the only two
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signers allowed to draw checks on the Superior account. Per the PACA Order, Scott Jenson and
Jane Castillo are currently the only individuals permitted to draw checks on the Delta P ACA
Trust Account.
2. 5 As the Court is aware, the Debtors have not been operating their businesses
throughout this case. Furthermore, both Mr. Garza and Ms. Castillo are no longer employees of
the Debtors. The Debtor anticipates in the near future and once all the P ACA claims and issues
are settled that the Debtors will need to draw checks on these accounts for payment to P ACA
creditors and for other Court permitted uses. Therefore, in order to be in compliance with the
PACA Order, the Debtors request the Court's permission and authority to change the signature
blocks on the PACA Trust Accounts with Frost Bank. Walter Scott Jensen will still be one of
the signers on the PACA Trust Accounts; in addition, Craig Stokes will replace both Mr. Garza
and Ms. Castillo as the second signer on the P ACA Trust Accounts.
2.6 Craig Stokes, Esq. is currently retained per a Court Order as the Debtors' Special
Counsel in charge of all P ACA claims and P ACA related issues. Regardless of the outcome of
the hearing on the US Trustee's Certificate of Non-Compliance, Mr. Stokes will continue to
represent the Debtor with regard to all P ACA claims. Therefore it is the Debtors' opinion that he
is best suited to be a signer on the P ACA Trust Accounts. All checks drawn on the P ACA Trust
Accounts will require the signatures of both Walter Scott Jensen and Craig Stokes. Mr. Stokes
has agreed to be a signer on the P ACA Trust Accounts.
2. 7 The Debtors will take all steps necessary to institute these changes to the P ACA
Trust Accounts at Frost Bank upon entry of the Court's Order authorizing the modification of the
PACAOrder.
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III. PRAYER
WHEREFORE PREMISES CONSIDERED, the Debtors pray that the Court enter an
Order granting the relief requested herein and allow the Debtors to modify the P ACA Order as
detailed herein, and for such other and further relief at law or equity to which they are otherwise
entitled.
Respectfully submitted,
LANGLEY & BANACK, INC.
745 E. Mulberry, Suite 900
San Antonio, Texas 78212
(210) :__!..:_____!!__

WILLIAM R. DAVIS, JR.
State Bar No. 05565500
ALLEN M. DeBARD
State Bar No. 24065132
ATTORNEYSFORDEBTORS
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the above and foregoing instrument was
forwarded via United States Mail, First Class, postage prepaid, to the parties listed on the
attached service list and below and those registered to receive electronic notice on October :23,
2012.
ALLEN M. DeBARD
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A&A Transportation, Inc.
4741 College Park
San Antonio, TX 78249
Bonanza 2001
P.O. Box 357
Hidalgo, TX 78857
Dimare Newman, Inc.
P.O. Box 517
Newman, CA 95360-0517
Harllee Packing, Inc.
P.O. Box 8
Palmetto, FL 34220
J-C Distributing, Inc.
2731 N. Donna Avenue
Nogales, AZ 85621
Mission Produce, Inc.
2500 Vinyard Ave., Suite 300
Oxnard, CA 93036
Royal Flavor, LLC
2655 Melksee St.
San Diego, CA 92154
A&D Carriers
4126 Luckenbach Road
B. Catalani
1500 S. Zarzamora, Unit 236
Fresh Farm Direct, LLC
106 Adams St., Suite 2A
Monte Vista, CO 81144
Alamo Leasing
2010 NW Military Hwy.
Del Camp Supreme, Inc.
672 W. Frontage Road
Noales, AZ 85621
Divine Ripe, LLC
700 S. Bridge St., Suite C
Hidalgo, TX 78557
Harvest Crown Co, Inc.
P.O. Box 13578
Bakersfield, CA 93389
Juniper Tomato Grower, Inc.
P.O. Box 38
Greensboro, FL 32330
Rio Queen Citrus
4012 E. Goodwin Rd.
Mission, TX 78574
Slankard Produce Co., Inc.
1500 S. Zarzamora
A&A Concepts, LLC
1219 S. Zarzamora St.
Banana Distributing
Gonzalez Mexican Produce
2501 W. Military Hwy., A-23
McAllen, TX 78503
Bernardi & Associates
557 E. Frontage Road
Nogales, AZ 85621
Delta Produce Marketing
2001 S. Laredo St.
Frank's Distributing ofProduce
P.O. Box 2020
Nogales, AZ 85628-2020
IFCO Systems NA
5250 Tacco Drive
Kingdom Fresh Produce, Inc.
2243 North Goolie Rd., #A
Donna, TX 78537
United States Trustee
615 E. Houston St., #533
Valero Marketing & Supply
P.O. Box 300
Amarillo, TX 79105-0300
Averitt Brokerage Co., Inc.
9999 Perrin Beitel, Suite B
Coosemans Houston, Inc.
3124 Produce Row
Houston, TX 77023
Harllee Packing, Inc.
P.O. Box 8
Palmetto, FL 34220
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Henry Avocado Corp.
P.O. Box 300867
Escondidio, CA 92030-0867
M&P Logistic LP
Slankard Produce
1500 S. Zarzamora St.
Willson Davis Co.
1500 S. Zarzamora St., #103
Craig A. Stokes
Stokes Law Offices, LLP
3330 Oakwell Court, Suite 225
San Antonio, TX 78218-3066
Zachary B. Aoki
Thurman & Phillips, P.C.
8000 IH-10 West, Suite 1000
San Antonio, Texas 78230
Celinda Baez Guerra
Flume Law Firm, LLP
1020 NE Loop 410, Suite 200
David G. Aelvoet
Linebarger Goggan Blair & Sampson
711 Navarro, Suite 300
Joe R. Hinojosa
Barkhurst & Hinojosa, PC
110 Broadway, Suite 350
Evan S. Goldstein
Updike, Kelly & Spellacy, PC
P.O. Box 231277
Hartford, CT 06123-1277
Kitchen Pride
P.O. Box 585
Gonzales, TX 78629
Maxim Egg Farms
P.O. Box 200805
Dallas, TX 75320-0805
Sunriver Sales
P.O. Box 2738
Visalia, CA 93279
International Bank of Commerce
130 E. Travis St.
San Antonio, TX 78205-1601
Robert E. Goldman, Esq.
1 East Broward Blvd., Ste. 700
Fort Lauderdale, FL 33301
National LS, Inc.
C/0 Zach Dworaczyk
P.O. Box 840352
Houston, TX 77284
Michael J. Black
Bums & Black, PLLC
750 Rittiman Rd.
Bruce W. Akerly
Cantey Hanger, LLP
1999 Bryan St., Suite 3300
Dallas, TX 75201
Elliott S. Cappuccio
Pulman, Cappuccio, Pullen & Benson
2161 NW Military Hwy., Suite 400
Jason A. Starks
Assistant Attorney General
P.O. Box 12548
Austin, TX 78711-2548
Le Best Banana Supply Co.
P.O. Box 295
Hidalgo, TX 78557
Rio Bravo Produce
1 006 S. Cesar Chavez
Edinburg, TX 78542
Touchstone & Associates
1500 S. Zarzamora St., #205
Internal Revenue Service
P.O. Box 7346
Philadelphia, PA 19101-7346
Michael Colvard
Martin & Drought
Suite 300 Convent Street, 25
1
h Floor
Diana M. Geis
Curl & Stahl, PC
700 N. St. Mary's, #1930
Steven E. Nurenberg
Meuers Law Firm
5395 Park Central Court
Naples, FL 34109
Jason R. Klinowski
Freeborn & Peters, LLP
311 S. Wacker Dr., Suite 3000
Chicago, IL 60606
Randall A. Pulman
Pulman, Cappuccio, Pullen & Benson
2161 NW Military Hwy., Suite 400
Patrick L. Huffstickler
Cox Smith Matthews Incorporated
112 E. Pecan, Suite 1800

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12-50073-a998 Doc#367 Filed 10/23/12 Entered 10/23/12 10:15:52 Main Document Pg 1

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