Opinion
NOT FOR PUBLICATION
ORDER DENYING APPLICATION TO EMPLOY THOMAS C. NELSON AS GENERAL COUNSEL TO DEBTOR
James W. Mayers, Judge
The court has reviewed the Application to Employ Thomas C. Nelson as General Counsel to Debtor ("Application") and the remaining docket entries in this case. In addition, this Court is preparing a decision and order relating the Court's concerns about the professional practices of Mr. Nelson in another Chapter 11 case. In re Simplon Ballpark LLC., Case No. 08-01803-JMll, ("Simplon Case"), which will be issued forthwith.
The Application in the present case is inadequate. First, Mr. Nelson has not filed form CSD 1009, the required disclosure statement of attorneys fees. Second, the declaration he filed in support of the Application is incomplete. It fails to include information, to the best of his knowledge, of all of Mr. Nelson's connections with the debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States trustee, or any person employed in the office of the United States trustee, information specifically required by Bankruptcy Rule 2014(a). If he has no connections with anyone in the scope of those categories, he must include such a statement in his declaration under penalty of perjury.
Finally, the Court has serious concerns about the professionalism exhibited by Mr. Nelson, and his ability to competently represent a Debtor-in-Possession. The litany of tardy filings and lack of candor displayed by Mr. Nelson in the Simplon Case will be enumerated in the forthcoming decision, but it appears that Mr. Nelson is continuing the pattern here.
The petition in this case was filed July 9, 2009, as a "bare bones" filing. The § 341(a) meeting of creditors was scheduled for August 4, 2009, at 3:00 p.m. The balance of schedules were due by July 24, 2009. At 3:54 p.m. on July 24, Mr. Nelson filed an Ex Parte Application, "out of an abundance of caution", for an extension of time to file the schedules and statement of affairs to July 31, 2009. The Ex Parte Application contained an express condition requiring the Debtor to personally deliver the copies of the schedules to the Office of the United States trustee no later than 12:00 p.m. on July 31, 2009. With that express condition, the United States trustee filed a Statement of No Opposition to the Ex Parte Application.
The Court is not aware of the timing of the delivery of the copies to the United States trustee, but notes that the Balance of Schedules and Statement of Affairs were not tendered to the Court until 12:13 p.m. on August 5, 2009. This delay violated the terms of the proposed order extending the time. And, unless the schedules were received by all creditors and interested parties by July 31, had the effect of denying them any opportunity to review the schedules before the § 341(a) meeting.
Therefore, given the procedural inadequacies associated with the Application, and the unresolved concerns about the professional ability of Mr. Nelson to fulfill his obligations as an officer of the court or counsel for a Debtor-in-Possession,
IT IS ORDERED that:
1) The Application is denied.
2) This Order is without prejudice to an amended Application upon cure of the procedural deficiencies in this case and a satisfactory showing of cause for the lack of candor and competence displayed in the Simplon Case.