Monthly Archives: October 2018

Bankruptcy Status Conference Oct. 25, 2018

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A status conference in the GOMO bankruptcy proceeding was held by Judge David Jones Thursday afternoon, October 25, 2018. Counsel for GOMO, the Creditor Committee and the United States Trustee were present.

  • GOMO counsel Johnie Patterson reviewed the actions that had taken place since the last appearance before the Court in August, including publication of the results of the GO Reform committee survey results, the holding of two town hall meetings, and multiple additional meetings between GOMO Board members and the Creditor Committee members.
  • Mr. Patterson also outlined the position of GOMO regarding the way forward, and noted the areas where the Creditor Committee disagreed. Mr. Rubio, counsel for the Creditor Committee, restated the position of the Creditor Committee from his perspective.
  • Mr. Patterson set out the general approach that GOMO sees for the conclusion of the bankruptcy proceeding, including presentation of a plan of reorganization that results in a order from the court effectively curing the formation defect present in GOMO, and representing that certain bylaw and deed restriction changes would be pursued after the plan is confirmed. Combination with Garden Oaks Civic Club may be part of the plan.
  • Judge Jones rendered several times his disapproval of the concept of transfer fee funding of homeowner association activities.
  • Collection of Transfer Fees remains on hold through December 20, 2018.
  • The Court also permitted resident comments, and heard statements from two residents.
  • The Court determined that GOMO should prepare and present a disclosure statement and plan by December 20. While the plan was not required to be a joint plan, he asked GOMO counsel to keep Creditor Committee counsel informed as the plan is prepared, and to consider his input, which Mr. Patterson indicated he would do.
  • The two counsel were charged with drawing up an appropriate order reflecting the results of this hearing and presenting it to the judge.
  • The pending GOMO motion to remove several Creditor Committee members was held in abeyance until the December hearing, unless counsel for the United States Trustee advises the Court and the parties otherwise.