RESPONSE OF SILVEROAK HOLDINGS, LTD.,TO MOTION TO APPOINT CHAPTER 11 TRUSTEE Page 1Mark H. RalstonThe Ralston Law Firm2603 Oak Lawn AvenueSuite 200Dallas, TX 75219Phone: (214) 295-6416Fax: (214) 602-1250Email: RalstonLaw@gmail.comCOUNSEL FOR SILVEROAK HOLDINGS,LTD.

IN THE UNITED STATES BANKRUPTCY COURTFOR THE NORTHERN DISTRICT OF TEXASDALLAS DIVISIONIN RE:SILVEROAK HOLDINGS, LTD.,Debtor.§§§§§§§Chapter 11Case No. 09-33211RESPONSE OF SILVEROAK HOLDINGS, LTD.,TO MOTION OF U.S TRUSTEE TO APPOINT CHAPTER 11 TRUSTEE

TO THE HONORABLE U.S. BANKRUPTCY JUDGE:Silveroak Holdings, Ltd. (“Silveroak or the “Debtor”) as debtor and debtor-in- 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 responsewould show as follows:

I. FACTUAL BACKGROUND

Silveroak’s principal business is the operation of a premier steak houserestaurant doing business under license agreement as “Bob’s Steak & Chop House” at4300 Lemmon Avenue in Dallas, Texas.

Case 09-33211-hdh11 Doc 70 Filed 08/04/09 Entered 08/04/09 17:15:01 Desc MainDocument Page 1 of 4

RESPONSE OF SILVEROAK HOLDINGS, LTD.,TO MOTION TO APPOINT CHAPTER 11 TRUSTEE Page 2

On May 26, 2009 (the “Petition Date”), Silveroak filed the above-captioned and numbered bankruptcy case (the “Bankruptcy Case”).3.

Since the Petition Date, the Debtor has managed its estate as debtor in possession without objection of any party save the Movant.4.

This Bankruptcy Court has approved Silveroak’s engagement of JordanDonahoe & Co. (“JDC”) as its bookkeeper and accountant. Contrary to the assertionsmade by Movant in the Motion, Mr. Don Jordan is not Silveroak’s chief restructuringofficer. (Although Silveroak originally sought such relief, it determined later not to pursue the engagement.)5.

Despite facing exceeding difficult circumstances in the high-end restaurant business, Silveroak has re-paid all post-petition loans under its approved debtor-in- possession credit facility.

II. DISCUSSION

Movant seeks the appointment of a chapter 11 trustee on two ostensiblegrounds. First, Movant asserts that because Mr. Robert Sambol (“Sambol”), the soleofficer of Silveroak’s general partner, is subject of a currently pending felony criminalindictment, 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 interestsof the creditors that this Bankruptcy Court appoint a chapter 11 trustee.7.

Section 1104(a)(1) requires that a trustee be appointed where there is“fraud, dishonesty, incompetence or gross mismanagement of the affairs of the debtor bycurrent management … . “

Regarding the claims against Mr. Sambol, they are just that – claims. Movant has failed to establish that there is anything more than allegation of

All statutory references shall be to the Bankruptcy Code, Title 11, United States Code.

Case 09-33211-hdh11 Doc 70 Filed 08/04/09 Entered 08/04/09 17:15:01 Desc MainDocument Page 2 of 4

RESPONSE OF SILVEROAK HOLDINGS, LTD.,TO MOTION TO APPOINT CHAPTER 11 TRUSTEE Page 3

wrongdoing by Mr. Sambol. Furthermore, Silveroak has never hidden from theallegations asserted. To the contrary, it has addressed those same issues in prior proceedings before this Court.8.

Regarding the best interest of creditors, it is most telling that no creditor has joined in Movant’s Motion. Furthermore, the success of Silveroak’s businessoperations is linked directly with the retention of Sambol as the manager of Silveroak’srestaurant operations. To wit, if a Chapter 11 trustee were appointed, the trustee wouldstill be in the position of having to retain Sambol or ceasing Silveroak’s businessoperations. This is a “thin” case; one that cannot afford excessive administrativeexpenses. Then, how is it in the best interest of creditors to add an additionally layer of management to Silveroak’s operations?9.

Movant also urges that the relationship between Silveroak and Mr. BillLenox 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 itis the best interests of creditors to appoint a chapter 11 trustee.

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 theMotion.

Case 09-33211-hdh11 Doc 70 Filed 08/04/09 Entered 08/04/09 17:15:01 Desc MainDocument Page 3 of 4