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Mark H. Ralston
The Ralston Law Firm
2603 Oak Lawn Avenue
Suite 200
Dallas, TX 75219
Phone: (214) 295-6416
Fax: (214) 602-1250
Email: RalstonLaw@gmail.com
possession in this Chapter 11 case (the “Bankruptcy Case”), files this, its response to
United States Trustee’s Motion to Appoint Chapter 11 Trustee [Docket No. 62] (the
“Motion”), filed by the United States Trustee (“Movant”), and in support of this response
I. FACTUAL BACKGROUND
restaurant doing business under license agreement as “Bob’s Steak & Chop House” at
2. On May 26, 2009 (the “Petition Date”), Silveroak filed the above-
3. Since the Petition Date, the Debtor has managed its estate as debtor in
Donahoe & Co. (“JDC”) as its bookkeeper and accountant. Contrary to the assertions
made by Movant in the Motion, Mr. Don Jordan is not Silveroak’s chief restructuring
officer. (Although Silveroak originally sought such relief, it determined later not to
business, Silveroak has re-paid all post-petition loans under its approved debtor-in-
II. DISCUSSION
grounds. First, Movant asserts that because Mr. Robert Sambol (“Sambol”), the sole
indictment, a trustee should be appointed for cause. And second, Movant asserts that
because of connections between Sambol and Mr. Bill Lenox, that it is in the best interests
current management … . “1 Regarding the claims against Mr. Sambol, they are just that –
claims. Movant has failed to establish that there is anything more than allegation of
1
All statutory references shall be to the Bankruptcy Code, Title 11, United States Code.
wrongdoing by Mr. Sambol. Furthermore, Silveroak has never hidden from the
allegations asserted. To the contrary, it has addressed those same issues in prior
operations is linked directly with the retention of Sambol as the manager of Silveroak’s
restaurant operations. To wit, if a Chapter 11 trustee were appointed, the trustee would
operations. This is a “thin” case; one that cannot afford excessive administrative
expenses. Then, how is it in the best interest of creditors to add an additionally layer of
9. Movant also urges that the relationship between Silveroak and Mr. Bill
Lenox somehow creates cause meriting the appointment of a chapter 11 trustee. Again,
this relationship was fully disclosed by Silveroak in its first-day motions and supporting
papers. There is nothing new here. The fact that a party formerly involved with Silveroak
may be interested in acquiring Silveroak’s business does not in and of itself mean that it
III. CONCLUSION
Cause does not exist to require this Court to appoint a chapter 11 trustee. To whit,
the claims made against Sambol are just that – claims. And it is not in the best interest of
creditors to appoint a chapter 11 trustee. Accordingly, this Court should deny the
Motion.
Respectfully submitted,
Email: raslstonlaw@gmail.com
CERTIFICATE OF SERVICE
This is to certify that the undersigned caused a true and correct copy of the
foregoing document to be served on this, the 4th day of August, 2009, electronically on all
parties receiving notice through the Court’s ECF system.
Mark H. Ralston