OBJECTION TO TRUSTEE’S MOTION FOR ORDER APPROVING COMPROMISE AND
SETTLEMENT WITH RIVER CRUISE INVESTMENTS, LTD., PURSUANT TO RULE 9019, FEDERAL
RULES OF BANKRUPTCY PROCEDURE –
PAGE 1
Gerrit M. Pronske
State Bar No. 16351640
Vickie L. Driver
Texas Bar No. 24026886
Christina W. Stephenson
State Bar No. 24049535
PRONSKE & PATEL, P.C.
2200 Ross Avenue, Suite 5350
Dallas, Texas 75201
(214) 658-6500 – Telephone
(214) 658-6509 – Telecopier
Email: gpronske@pronskepatel.com
Email: vdriver@pronskepatel.com
Email: cstephenson@pronskepatel.com
COUNSEL FOR JEFFREY BARON
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
In re: §
§
ONDOVA LIMITED COMPANY, § CASE NO. 09-34784-SGJ-11
§
Debtor. § Chapter 11
OBJECTION TO TRUSTEE’S MOTION FOR ORDER APPROVING COMPROMISE
AND SETTLEMENT WITH RIVER CRUISE INVESTMENTS, LTD., PURSUANT TO
RULE 9019, FEDERAL RULES OF BANKRUPTCY PROCEDURE
TO THE HONORABLE STACEY G. C. JERNIGAN,
UNITED STATES BANKRUPTCY JUDGE:
Jeffrey Baron (“Baron”), a creditor in this case, hereby files this his Objection to Trustee’s
Motion for Order Approving Compromise and Settlement with River Cruise Investments, Ltd.,
Pursuant to Rule 9019, Federal Rules of Bankruptcy Procedure filed on February 9, 2010 by
Daniel J. Sherman (the “Trustee”) and in support thereof, respectfully represents as follows:
I. FACTUAL BACKGROUND
1. On July 27, 2009 (the “Petition Date”), the Debtor filed for bankruptcy protection
under chapter 11 of title 11 of the Bankruptcy Code.
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OBJECTION TO TRUSTEE’S MOTION FOR ORDER APPROVING COMPROMISE AND
SETTLEMENT WITH RIVER CRUISE INVESTMENTS, LTD., PURSUANT TO RULE 9019, FEDERAL
RULES OF BANKRUPTCY PROCEDURE –
PAGE 2
2. On September 17, 2009, the Court entered an order approving the appointment of
a chapter 11 trustee (Docket No. 98).
3. On February 9, 2010, the Trustee filed his Motion for Order Approving
Compromise and Settlement with River Cruise Investments, Ltd., Pursuant to Rule 9019, Federal
Rules of Bankruptcy Procedure (the “Motion”) (Docket No. 259).
II. OBJECTION
4. The Motion seeks approval of a settlement under which River Cruise Investments,
Ltd. (“River Cruise”) will pay a total of $350,000.00 to the Debtor, minus a deduction for the
Beckham Group’s Compensation fee. Such payment is essentially a reimbursement for excess
funds paid to River Cruise in connection with the Loan Agreement.
1
However, as shown by the
Acknowledgement and Release, attached hereto as Exhibit “A,” such funds were actually paid
by Baron, a Guarantor under the Loan Agreement. Thus, the $350,000.00 referenced in the
Motion are funds which rightfully should be returned to Baron, and not paid to the Debtor. As
the Motion seeks authority to enter in to a settlement which pays such funds to the Debtor, and
not to Baron, Baron hereby objects to the Motion.
5. Baron reserves his right to file a brief in support of this Objection.
WHEREFORE PREMISES CONSIDERED, Baron respectfully requests this Court deny
the Motion and grant Baron such other and further relief whether in law or equity, to which
Baron is entitled.
1
Terms not defined herein shall have the meanings ascribed to them in the Motion.
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OBJECTION TO TRUSTEE’S MOTION FOR ORDER APPROVING COMPROMISE AND
SETTLEMENT WITH RIVER CRUISE INVESTMENTS, LTD., PURSUANT TO RULE 9019, FEDERAL
RULES OF BANKRUPTCY PROCEDURE –
PAGE 3
Dated: March 3, 2010 Respectfully submitted
By: /s/ Gerrit M. Pronske____
Gerrit M. Pronske
Texas Bar No. 16351640
Vickie L. Driver
Texas Bar No. 24026886
Christina W. Stephenson
Texas Bar No. 24049535
PRONSKE & PATEL, P.C.
2200 Ross Avenue, Suite 5350
Dallas, Texas 75201
Telephone: 214.658.6500
Facsimile: 214.658.6509
Email: gpronske@pronskepatel.com
Email: vdriver@pronskepatel.com
Email: cstephenson@pronskepatel.com
COUNSEL FOR JEFFREY BARON
CERTIFICATE OF SERVICE
I, the undersigned, hereby certify that on March 3, 2010 I caused to be served the
foregoing pleading upon all parties registered to receive electronic notice via the Court’s
electronic transmission facilities.
/s/ _Gerrit M. Pronske______
Gerrit M. Pronske
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