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Specializing in insolvency and complex commercial matters since 1974

Plan Confirmed In Six Related Real Estate Cases - January 8, 2009

The Bankruptcy Court confirmed the Chapter 11 Plan filed by Blue Stone Real Estate, Construction Company, Inc. and five substantively-consolidated affiliates. The Debtors’ assets primarily consist of large tracts of undeveloped land in Hernando and Pasco Counties. Mortgage debt totaled approximately $25 million. One of the hotly litigated issues in the cases was the entitlement of the debtors-in-possession to name a Chief Restructuring Officer (“CRO”) over the objection of the U.S. Trustee and after its filing of a motion to appoint a trustee. The Bankruptcy Court concluded that the appointment of a CRO was appropriate and, in light of the appeal by the U.S. trustee, certified the decision to the United States Court of Appeals for the Eleventh Circuit. See In re Blue Stone Real Estate, Construction Company, Inc, .392 B.R. 897 and 396 B.R. 555 respectively. The appeal remains pending but may be subject to dismissal on mootness grounds. The firm's representation was led by Edward J. Peterson and Susan H. Sharp.