You are on page 1of 5

15-01204-ee Dkt 57 Filed 06/11/15 Entered 06/11/15 12:21:28 Page 1 of 5

UNITED STATES BANKRUPTCY COURT


SOUTHERN DISTRICT OF MISSISSIPPI
IN RE:

MINT RESTAURANT, LLC

CASE NO.

15-01204-ee

DEBTOR

CHAPTER

11

UNITED STATES TRUSTEES MOTION FOR ORDER COMPELLING DEBTOR TO

AMEND SCHEDULES AND STATEMENTS AND COMPLY WITH THE UNITED


STATES TRUSTEES OPERATING GUIDLEINES AND REPORTING
REQUIREMENTS FOR CHAPTER 11 CASES

Comes now Henry G. Hobbs, Jr., Acting United States Trustee for Region 5, by and
through undersigned counsel, pursuant to 28 U.S.C. 586, 11 U.S.C. 105(a), and Fed. R.
Bankr. P. 1009(a) and files this Motion for Order Compelling Debtor to Amend Schedules and
Statements and Comply with the United States Trustees Guidelines and Reporting Requirements
for Chapter 11 Cases and in support thereof will show unto the Court as follows, to wit:
Jurisdiction and Standing
1.

This Court has jurisdiction over this matter pursuant to 28 U.S.C. 157 and

1334 and 11 U.S.C. 105 and the order granting automatic reference to this Court. This matter
constitutes a core proceeding pursuant to 28 U.S.C. 157(b).
2.

The UST has standing to bring this motion pursuant to 11 U.S.C. 307.
Background

3.

On April 10, 2015, Mint Restaurant, LLC (hereafter the Debtor) filed a

voluntary petition for relief pursuant to 11 U.S.C. Chapter 11. Subsequent thereto the Debtor has
continued the operation of his business as a debtor-in-possession pursuant to 11 U.S.C.
1107(a).1

The Debtor operates a full service restaurant in the Renaissance at Colony Park in Ridgeland, Mississippi.

15-01204-ee Dkt 57 Filed 06/11/15 Entered 06/11/15 12:21:28 Page 2 of 5

4.

On May 5, 2015, the United States Trustee conducted an initial debtor interview

(IDI) in this case. At the time the IDI was conducted, the Debtor had not provided the United
States Trustee with the following documents required by the United States Trustees Operating
Guidelines and Reporting Requirements for Chapter 11 Cases (OGRR-11):

balance sheet for month-end immediately preceding filing (March 2015);


proof of insurance with United States Trustee listed as party of notice;2
Declaration of Pre-Petition Account Closings; and
copy of signature card and original voided check for each DIP bank account.3

The United States Trustee set a deadline of May 20, 2015, to cure these deficiencies.
5.

On May 20, 2015, the United States Trustee conducted the meeting of creditors in

this case. The IDI deficiencies had not been cured as of the meeting of creditors. Additionally,
certain schedule and statement deficiencies were noted. The United States Trustee set a deadline
of June 5, 2015, to cure the IDI deficiencies and to amend the Debtors schedules and statements.
6.

The Debtor has failed to take any action with respect to the aforementioned

deficiencies.
Schedule and Statement Deficiencies
7.

Schedule H is incomplete in that it fails to provide all information required

therein. More particularly, Schedule H fails to provide that the names and addresses of creditors.
Schedule H also fails to disclose all codebtors.
8.

In conjunction with the IDI, the Debtor provided various financial documents to

the United States Trustee. These documents reflect liabilities which are not reflected in the

The United States Trustee has a pending Motion to Dismiss due to the Debtors failure to maintain insurance
customary and appropriate to the Debtors industry. See Dkt. # 42.
3

The Debtor provided a copy of the signature card for its operating account at the May 20, 2015, meeting of
creditors.

15-01204-ee Dkt 57 Filed 06/11/15 Entered 06/11/15 12:21:28 Page 3 of 5

Debtors schedules. The Debtors managing member confirmed these liabilities during the 341
meeting of creditors.
9.

The Debtors responses to SOFA questions 3c and 23 fails to provide the

information required therein.4


10.

The Debtor should be compelled to amend the aforementioned schedules and

statements to provide all information required therein.


OGRR-11
11.

The United States Trustee, in furtherance of his statutory duties under 28 U.S.C.

586 and the Bankruptcy Code, has issued Guidelines and Reporting Requirements for Chapter 11
Cases. The OGRR-11 establish instructions for debtors-in-possession and chapter 11 trustees,
and assist the United States Trustee in his supervision and monitoring of the administration of
chapter 11 cases. While the OGRR-11 does not have the force of law or rules, the United States
Trustee submits that the guidelines essentially incorporate the duties of a debtor-in-possession
under 11 U.S.C. 1106 and 1107 which subsume the duties of a trustee under 704.
12.

The OGRR-11 requires debtors-in-possession to furnish the United States Trustee

with proof of insurance listing the United States Trustee as a party of notice, to execute a
Declaration of Pre-petition Account Closing once their pre-petition accounts are closed and
provide the United States Trustee with copies of signature cards and voided checks to evidence
the opening of debtor-in-possession accounts and to ensure that such accounts are properly
styled.

According to the Debtors managing members 341 testimony, the Debtor repaid loans to insiders or made
payments to third parties for the benefit of insiders within the year preceding the filing of the case. The Debtors
managing member also testified that he and his spouse received a salary from the Debtor within the year preceding
the filing of the case.

15-01204-ee Dkt 57 Filed 06/11/15 Entered 06/11/15 12:21:28 Page 4 of 5

13.

Here, the Debtor has failed to provide proof of insurance listing the United States

Trustee as a party of notice, the Declaration of Pre-petition Account Closing or copies of


signature cards and original voided checks for each DIP account.
14.

The Debtor should be compelled to provide proof of insurance listing the United

States Trustee as a party of notice, the Declaration of Pre-petition Account Closing and copies of
signature cards and original voided checks for each DIP account.
WHEREFORE, the United States Trustee prays for an order compelling the Debtor to
amend its schedules and statements and to fully comply with the United States Trustees OGRR11 as set forth herein.
The United States Trustee further prays for all general and equitable relief to which
entitled.
Respectfully Submitted,
HENRY G. HOBBS, JR.
Acting United States Trustee
Region 5, Judicial Districts
of Louisiana and Mississippi
By:
RONALD H. McALPIN (MSB #2182)
Assistant U. S. Trustee
United States Department of Justice
501 East Court Street, Suite 6-430
Jackson, Mississippi 39201
Telephone: (601) 965-5247
Fax: (601) 965-5226
Email: ronald.mcalpin@usdoj.gov

/s/ Ronald H. McAlpin


RONALD H. McALPIN

15-01204-ee Dkt 57 Filed 06/11/15 Entered 06/11/15 12:21:28 Page 5 of 5

CERTIFICATE OF SERVICE
I, Ronald H. McAlpin, Assistant U. S. Trustee, do hereby certify that a copy of the foregoing
pleading has been served this day on the below named individual(s) via first class U.S. Mail at the address
listed below or by Notice of Electronic Filing via the email address on file with the courts CM/ECF
system:

R. Michael Bolen
3770 Highway 80 West
Jackson, MS 39209-7504
Email: rmichaelbolen@bellsouth.net
Dated: June 11, 2015

/s/ Ronald H. McAlpin


Ronald H. McAlpin
Assistant U. S. Trustee