Author Topic: BANKRUPTCY UP-DATE (Read 7892 times)

Anonymous · « **on:** August 01, 2009, 03:44:59 PM »

Morris Lawfirm (Thornton Morris) a creditor, petitoned the court through their own attorney, Ted W. Hight to receive all notices etc. pertaining to HLA's bankruptcy fiings. Interesting, "Further Counsel requests that it will be provided with a copy of any Disclosure Statement to be permitted prior to its approval and any and all Plans of Reorganization."
BB&T wants relief from the "automatic stay" and wants HLA, debtor, to be designated " as a Single Asset Real Estate Debtor". Also, BB&T noted there has been NO REORGANIZATION filed by HLA - HLA, INC. and no interest payments made to BB&T. BB&T motioned the court, if by August 14th, 2009, there is NO REORGANIZATION FILED and NO INTEREST PAYMENTS MADE TO BB&T, the court grant the lifting of the stay so that BB&T can excercise its contractual and state law rights and remedies against the debtor (HLA)(HLA,INC).
Also on HLA May 09 financial disclosure HLA is still showing "Uniform purchase"...a minute amount compared to the tens of thousands claimed on HLA's 990's over the years...that parents actually paid for.
Also, interesting, as a creditor, one family from Georgia filed against Debtor (HLA, HLA,INC) for PRE-PAID TUITION... I don't know if this family is one of the families the was scammed into pre-paid tuition the week and weekend before the filing.

NOTE*:The weekend before HLA filed for bankruptcy, Buccellato informed his staff, yet he/ HLA accepted children and pre-paid tuition, knowing the families would not get it back and did not disclose the imminent bankruptcy filing. Ethics?

Troll Control · « **Reply #1 on:** August 02, 2009, 08:26:19 AM »

But TheWho assures us HLA is run legally and ethically.

Anonymous · « **Reply #2 on:** September 17, 2009, 04:04:08 PM »

New hearing... October 14th, 2009. The U.S. Trustee has filed a motion to dismiss (Chapter 11) or convert case(Chapter 7) liquidation. No reorganization has been filed. Hearing October 14th, 2009. Now the ORS is going to have a problem with this. They are allowing Ridge Creek School to continue on property that could is involved in this bankruptcy.

Anonymous · « **Reply #3 on:** September 17, 2009, 05:26:35 PM »

I would imagine the IRS and the U.S. Bankruptcy Court are also going to have a problem with this...

Call the court yourself and ask them if it's okay that HLA, Inc. has filed bankruptcy, but is running Ridge Creek School on the SAME property by the SAME owner. The phone number to the court is 404.331.4437, Case Number 09-22026-reb, Judge Robert Brizendine. Make sure you reference HLA, Inc., 1950 North Park Place, Suite 400, Atlanta, GA 30339.

The ORS is also going to get grilled over how and why they're letting this occur as well.

Anonymous · « **Reply #4 on:** September 17, 2009, 08:04:09 PM »

Oh, and yes, the U.S. Bankruptcy court will be getting copies of the various entities' - Ridge Creek School, Ridge Creek Wilderness, Mountain Brook Academy, etc - web sites to show that Bucci isn't bankrupt as he claims. They'll also be looking into how he had Thorton Morris move his assets all around. (C'mon Bucci - you really thought we weren't smart enough to see those $1.00 tranfers?)

Anonymous · « **Reply #5 on:** September 17, 2009, 09:16:54 PM »

Quote from: "Guest99"

I would imagine the IRS and the U.S. Bankruptcy Court are also going to have a problem with this...

Call the court yourself and ask them if it's okay that HLA, Inc. has filed bankruptcy, but is running Ridge Creek School on the SAME property by the SAME owner. The phone number to the court is 404.331.4437, Case Number 09-22026-reb, Judge Robert Brizendine. Make sure you reference HLA, Inc., 1950 North Park Place, Suite 400, Atlanta, GA 30339.

The ORS is also going to get grilled over how and why they're letting this occur as well.

Thank you, 99; and thank you Jill Ryan. Please, everybody, call the court as 99 has suggested. The only way any of this ever came about was through the actions of people, like Ms. Ryan, who wouldn't be silenced and who wouldn't give up. Call tomorrow. 5 minutes at most out of your day, and let them know you think this is wrong.

Anonymous · « **Reply #6 on:** September 17, 2009, 09:26:40 PM »

I think Guests and Jill needs to understand legal entities better before they get their panties in a wad. There isn't anything against the law for different legal entities to have the same principal. Unless Bucci is personally filing, the various entities are legally not related, regardless of who is the principal. That's one of the basic reasons legal entities are created for in the first place: to separate assets. For example, I have various rental properties where I have created different LLCs for each one so if one has problems, I don't lose them all. You'll find most folks with substantial assets have very little in their own personal name. There is nothing "fishy" or "wrong" about that. Protecting yourself with legal entities if totally legitimate.

Anonymous · « **Reply #7 on:** September 17, 2009, 10:59:28 PM »

And today we learn why attempting to cheat the bankruptcy court by moving assets around is a federal crime.

Anonymous · « **Reply #8 on:** September 18, 2009, 01:39:12 AM »

Quote from: "truthtroller"

I think Guests and Jill needs to understand legal entities better before they get their panties in a wad. There isn't anything against the law for different legal entities to have the same principal. Unless Bucci is personally filing, the various entities are legally not related, regardless of who is the principal. That's one of the basic reasons legal entities are created for in the first place: to separate assets. For example, I have various rental properties where I have created different LLCs for each one so if one has problems, I don't lose them all. You'll find most folks with substantial assets have very little in their own personal name. There is nothing "fishy" or "wrong" about that. Protecting yourself with legal entities if totally legitimate.

lol. we just discussed a similar case in my law class.

an individual was brought up on tax evasion charges. he was depositing large sums of cash in under $10,000 amounts to avoid being monitored. when you deposit over ten grand, a form goes out to govt agencies, under ten, it does not have to be disclosed. he was depositing around thirty grand a week, 2-3 grand at a time. He was doing this upon the advice of his lawyer, which in limited cases is good advice. it's Ok if you those kinds of deposits once in a while as long as they dont add up to more than around twenty five grand a year (although the actual limit varies from case to case - e.g line of business, purpose, source of income, prior tax, criminal, and credit history). this guy deposited around nine million over the course of a decade and got away with it tax-free....AT THE ADVICE OF HIS LAWYER. That was they guy's defense at trial - that his lawyer told him to do it, that he didnt know any better, and that tons of other businesses do it. that didnt matter, as the guy most of his assets taken away and is sitting in a federal prison doing a fifteen year sentence. the lawyer? he was only disbarred, but was accepted back after a few years.

Anonymous · « **Reply #9 on:** September 18, 2009, 01:41:23 AM »

Yeah, most banks have automatic suspicious activity report (SAR) generators that will catch that shit.

Don't ask how I know.

Due to bureaucracy and retardation, the odds of the gubmint actually doing something about it are fairly low.

Anonymous · « **Reply #10 on:** September 18, 2009, 05:38:29 AM »

"I think Guests and Jill needs to understand legal entities better before they get their panties in a wad."

It appears from your statement that you have a problem with educated women, or is it women in general? Dialogue and debate should remain gender free.

I fully understand "legal entities" Sir. It is far better to do "Estate Planning" and "Asset Management" before the ax falls. It truly looks far better on paper. We were referring to UFTA (Uniform Fraudulent Transfer Act) also known as "Fraudulent Conveyance" .

http://www.cga.ct.gov/2005/pub/Chap923a.htm

Your LLC's -be serious - baby 's breath compared to this.

RIDGE CREEK SCHOOL - A SEPARATE ENTITY
The US Trustee has filed a motion on 09-11-09 to dismiss HLA's Chapter 11 or convert to Chapter 7(liquidation). The hearing is set for October. According to the court, HLA, INC. has not filed a reorganization plan, which has pushed the Feds to file their motion. Ridge Creek School / Ridge Creek, Inc. is the reorganization, but it appears the Feds have not been informed. Herein lies the problem for Ridge Creek School. The 196 acre campus (formerly Hidden Lake Academy, Inc.) is what Ridge Creek School resides upon. BB&T filed foreclosure on the 196 acres - they want it. Then Buccellato puts HLA, INC. into Chapter 11 Bankruptcy, which stays the foreclosure proceedings. Now come the Feds filing a motion to dismiss or convert to Chapter 7. If, a rather large if, Chapter 7 is granted, the 196 acres including the buildings would be liquidated, leaving Ridge Creek School literally up in the air. With the possibility of liquidation looming, however remote, the ORS is sanctioning through piggy back licensing a school that may be without land to operate upon come mid-October. Somewhere, somehow, the ORS forgot it was created to protect. Educational Consultants should be cognizant of the bankruptcy filings and their possible ramifications. If you must line your pockets, do it somewhere else. As with HLA, Buccellato will accept children, allowing the families to lose their life savings, take out second mortgages, etc. up until the day of liquidation and never look back. However, since Buccellato has a penchant for tardiness, unless it involves accounts receivable, he may just file the reorganization plan, thus no October hearing on the motion. Shrewd enough. Buccellato and Thornton Morris may have something far better planned... their 5th ace, an October surprise. Retirement would be fine.

Anonymous · « **Reply #11 on:** September 22, 2009, 07:28:15 PM »

Here is the list of creditors from HLA's bankruptcy filing. Notice how the amount owed to Thorton Morris just happens to total $400K, which is the amount of the settlement? So Bucci signed over his house and some of his acreage to Thorton Morris only to declare bankruptcy. Nice way to stick all of your creditors with the settlement costs Bucci personally guaranteed to pay. I bet he's thinking he can transfer the property back to himself for $1 after the bankruptcy goes through... I will write and call whomever necessary to prevent him from absolving himself of responsibility.

09-22028-reb Hidden Lake Academy, Inc.
Judge: Robert Brizendine       Chapter: 11
Office: Gainesville         Last Date to file claims: 09/18/2009
Trustee:       Last Date to file (Govt):
Creditor: (11647615)
GMAC
P.O. Box 130424
Roseville, MN 55113    Claim No: 1
Original Filed Date: 05/26/2009
Original Entered Date: 05/26/2009   Status:
Filed by: CR
Entered by: GMAC,
Modified:
Secured    claimed:    $13305.20
Total    claimed:    $13305.20

History:
Details
   1-1
05/26/2009   Claim #1 filed by GMAC, total amount claimed: $13305.2 (GMAC)

Description: (1-1) N08 CHEVCOBALT VIN 1G1AK58F587198803
Remarks:

Creditor: (11647615)
GMAC
P.O. Box 130424
Roseville, MN 55113    Claim No: 2
Original Filed Date: 05/26/2009
Original Entered Date: 05/26/2009   Status:
Filed by: CR
Entered by: GMAC,
Modified:
Unsecured    claimed:    $6994.99
Secured    claimed:    $10925.00
Total    claimed:    $17919.99

History:
Details
   2-1
05/26/2009   Claim #2 filed by GMAC, total amount claimed: $17919.99 (GMAC)

Description: (2-1) N06 CHEVUPLANDER VIN 1GNDV33L26D135077
Remarks:

Creditor: (11647615)
GMAC
P.O. Box 130424
Roseville, MN 55113    Claim No: 3
Original Filed Date: 05/26/2009
Original Entered Date: 05/26/2009   Status:
Filed by: CR
Entered by: GMAC,
Modified:
Unsecured    claimed:    $6660.09
Secured    claimed:    $9625.00
Total    claimed:    $16285.09

History:
Details
   3-1
05/26/2009   Claim #3 filed by GMAC, total amount claimed: $16285.09 (GMAC)

Description: (3-1) N06 CHEVUPLANDER VIN 1GNDV23L66D188732
Remarks:

Creditor: (11647615)
GMAC
P.O. Box 130424
Roseville, MN 55113    Claim No: 4
Original Filed Date: 05/26/2009
Original Entered Date: 05/26/2009   Status:
Filed by: CR
Entered by: GMAC,
Modified:
Secured    claimed:    $2621.64
Total    claimed:    $2621.64

History:
Details
   4-1
05/26/2009   Claim #4 filed by GMAC, total amount claimed: $2621.64 (GMAC)

Description: (4-1) N06 CHEVMALIBU VIN 1G1ZS51F06F296217
Remarks:

Creditor: (11650646)
AMERICAN INFOSOURCE LP AS AGENT FOR
FIA CARD SERVICES, NA/BANK OF AMERICA
PO Box 248809
Oklahoma City, OK 73124-8809    Claim No: 5
Original Filed Date: 05/26/2009
Original Entered Date: 05/26/2009   Status:
Filed by: CR
Entered by: American InfoSource,
Modified:
Unsecured    claimed:    $25663.44
Total    claimed:    $25663.44

History:
Details
   5-1
05/26/2009   Claim #5 filed by AMERICAN INFOSOURCE LP AS AGENT FOR, total amount claimed: $25663.44 (American InfoSource)

Description:
Remarks:

Creditor: (11615811)
Lumpkin County
99 Court House Hall, Ste E
Dahlonega, GA 30533    Claim No: 6
Original Filed Date: 05/29/2009
Original Entered Date: 05/29/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Priority    claimed:    $75843.37
Total    claimed:    $75843.37

History:
Details
   6-1
05/29/2009   Claim #6 filed by Lumpkin County, total amount claimed: $75843.37 (kmj)

Description:
Remarks:

Creditor: (11680955)
CIT Technology Financing Services, Inc.
Bankruptcy Processing Solutions, Inc.
800 E. Sonterra Blvd., Suite 240
San Antonio, TX 78258    Claim No: 7
Original Filed Date: 06/02/2009
Original Entered Date: 06/02/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $2381.55
Total    claimed:    $2381.55

History:
Details
   7-1
06/02/2009   Claim #7 filed by CIT Technology Financing Services, Inc., total amount claimed: $2381.55 (kmj)

Description:
Remarks:

Creditor: (11680955)
CIT Technology Financing Services, Inc.
Bankruptcy Processing Solutions, Inc.
800 E. Sonterra Blvd., Suite 240
San Antonio, TX 78258    Claim No: 8
Original Filed Date: 06/02/2009
Original Entered Date: 06/02/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $58316.20
Total    claimed:    $58316.20

History:
Details
   8-1
06/02/2009   Claim #8 filed by CIT Technology Financing Services, Inc., total amount claimed: $58316.2 (kmj)

Description:
Remarks:

Creditor: (11680955)
CIT Technology Financing Services, Inc.
Bankruptcy Processing Solutions, Inc.
800 E. Sonterra Blvd., Suite 240
San Antonio, TX 78258    Claim No: 9
Original Filed Date: 06/01/2009
Original Entered Date: 06/02/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $34198.38
Total    claimed:    $34198.38

History:
Details
   9-1
06/01/2009   Claim #9 filed by CIT Technology Financing Services, Inc., total amount claimed: $34198.38 (kmj)

Description:
Remarks:

Creditor: (11703753)
DELL FINANCIAL SERVICES, LLC
Collections/Consumer Bankruptcy
12234B North I-35
Austin, TX 78753-1705
(800) 955-3355, ext. 7230302    Claim No: 10
Original Filed Date: 06/08/2009
Original Entered Date: 06/08/2009   Status:
Filed by: CR
Entered by: Streusand, Sabrina
Modified:
Secured    claimed:    $38286.57
Total    claimed:    $38286.57

History:
Details
   10-1
06/08/2009   Claim #10 filed by DELL FINANCIAL SERVICES, LLC, total amount claimed: $38286.57 (Streusand, Sabrina )

Description: (10-1) Financing Leases
Remarks:

Creditor: (11615808)
Internal Revenue Service
Centralized Insolvency Operati
PO Box 21126
Philadelphia, PA 19114    Claim No: 11
Original Filed Date: 06/11/2009
Original Entered Date: 06/11/2009   Status:
Filed by: CR
Entered by: Internal Revenue Service,
Modified:
Unsecured    claimed:    $69449.83
Secured    claimed:    $0.00
Priority    claimed:    $306282.81
Total    claimed:    $375732.64

History:
Details
   11-1
06/11/2009   Claim #11 filed by Internal Revenue Service, total amount claimed: $375732.64 (Internal Revenue Service)

Description:
Remarks:

Creditor: (11729475)
XO Communications, Inc.
Attn: Brad Lee
105 Molloy Street, Suite 300
Nashville, TN 37201    Claim No: 12
Original Filed Date: 06/15/2009
Original Entered Date: 06/15/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $1299.22
Total    claimed:    $1299.22

History:
Details
   12-1
06/15/2009   Claim #12 filed by XO Communications, Inc., total amount claimed: $1299.22 (kmj)

Description:
Remarks:

Creditor: (11615813)
North Georgia Credit Services
3482 Kieth Bridge, #321
Cumming, GA 30041    Claim No: 13
Original Filed Date: 06/22/2009
Original Entered Date: 06/22/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $15123.96
Total    claimed:    $15123.96

History:
Details
   13-1
06/22/2009   Claim #13 filed by North Georgia Credit Services, total amount claimed: $15123.96 (kmj)

Description:
Remarks:

Creditor: (11615814)
Yates Insurance Agency
4 Executive Park East, NE
Suite 200
Atlanta, GA 30329    Claim No: 14
Original Filed Date: 07/06/2009
Original Entered Date: 07/07/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $6526.06
Total    claimed:    $6526.06

History:
Details
   14-1
07/06/2009   Claim #14 filed by Yates Insurance Agency, total amount claimed: $6526.06 (kmj)

Description:
Remarks:

Creditor: (11840039)
Jeffrey A. Clark
3335 Rowan Road SW
Conyers, GA 30094-3450    Claim No: 15
Original Filed Date: 07/09/2009
Original Entered Date: 07/09/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $20118.95
Total    claimed:    $20118.95

History:
Details
   15-1
07/09/2009   Claim #15 filed by Jeffrey A. Clark, total amount claimed: $20118.95 (kmj)

Description:
Remarks:

Creditor: (11991793)
Pitney Bowes Inc
27 Waterview Dr
Shelton CT 06484    Claim No: 16
Original Filed Date: 08/19/2009
Original Entered Date: 08/19/2009   Status:
Filed by: CR
Entered by: Pitney Bowes, Inc.,
Modified:
Unsecured    claimed:    $12219.56
Total    claimed:    $12219.56

History:
Details
   16-1
08/19/2009   Claim #16 filed by Pitney Bowes Inc, total amount claimed: $12219.56 (Pitney Bowes, Inc.)

Description:
Remarks:

Creditor: (11991793)
Pitney Bowes Inc
27 Waterview Dr
Shelton CT 06484    Claim No: 17
Original Filed Date: 08/25/2009
Original Entered Date: 08/25/2009   Status:
Filed by: CR
Entered by: Pitney Bowes, Inc.,
Modified:
Unsecured    claimed:    $9152.85
Total    claimed:    $9152.85

History:
Details
   17-1
08/25/2009   Claim #17 filed by Pitney Bowes Inc, total amount claimed: $9152.85 (Pitney Bowes, Inc.)

Description:
Remarks:

Creditor: (12049721)
Jay Birsche
476 Viking Drive Suite 102
Virgibnia Beach, VA 23452    Claim No: 18
Original Filed Date: 09/01/2009
Original Entered Date: 09/01/2009   Status:
Filed by: AT
Entered by: Lefkoff, Craig
Modified:
Unsecured    claimed:    $10295.00
Total    claimed:    $10295.00

History:
Details
   18-1
09/01/2009   Claim #18 filed by Jay Birsche, total amount claimed: $10295 (Lefkoff, Craig )

Description:
Remarks:

Creditor: (11620173)
Georgia Dept. of Revenue
Bankruptcy Section
PO Box 161108
Atlanta, GA 30321    Claim No: 19
Original Filed Date: 09/01/2009
Original Entered Date: 09/01/2009
Last Amendment Filed: 09/03/2009
Last Amendment Entered: 09/03/2009   Status:
Filed by: CR
Entered by: Georgia Department of Revenue,
Modified:
Unsecured    claimed:    $10046.82
Secured    claimed:    $39410.24
Priority    claimed:    $61274.75
Total    claimed:    $110731.81

History:
Details
   19-1
09/01/2009   Claim #19 filed by Georgia Dept. of Revenue, total amount claimed: $93443.34 (Georgia Department of Revenue)
Details
   19-2
09/03/2009   Amended Claim #19 filed by Georgia Dept. of Revenue, total amount claimed: $110731.81 (Georgia Department of Revenue)

Description:
Remarks:

Creditor: (12077243)
U.S. Security Associates, Inc.
200 Mansell Court E., Ste. 500
Roswell, GA 30076    Claim No: 20
Original Filed Date: 09/10/2009
Original Entered Date: 09/10/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Unsecured    claimed:    $33066.37
Total    claimed:    $33066.37

History:
Details
   20-1
09/10/2009   Claim #20 filed by U.S. Security Associates, Inc., total amount claimed: $33066.37 (kmj)

Description:
Remarks:

Creditor: (12099264)
Branch Banking & Trust Company
c/o John A. Thomson, Jr.
Womble Carlyle Sandridge & Rice, PLLC
271 17th Street, N.W., Suite 2400
Atlanta, GA 30363-1017    Claim No: 21
Original Filed Date: 09/16/2009
Original Entered Date: 09/16/2009   Status:
Filed by: CR
Entered by: Thomson, John
Modified:
Secured    claimed:    $6964487.23
Total    claimed:    $6964487.23

History:
Details
   21-1
09/16/2009   Claim #21 filed by Branch Banking & Trust Company, total amount claimed: $6964487.23 (Thomson, John )

Description:
Remarks:

Creditor: (12103549)
John and Heidi Nunn
4928 Gaskin Walk
Marietta, GA 30068    Claim No: 22
Original Filed Date: 09/16/2009
Original Entered Date: 09/17/2009   Status:
Filed by: CR
Entered by: kmj,
Modified:
Priority    claimed:    $7065.00
Total    claimed:    $7065.00

History:
Details
   22-1
09/16/2009   Claim #22 filed by John and Heidi Nunn, total amount claimed: $7065 (kmj)

Description:
Remarks:

Creditor: (12104738)
Jason Aufdermaur
Morris Law Firm
1950 North Park Place
Suite 400
Atlanta, Georgia 30339    Claim No: 23
Original Filed Date: 09/17/2009
Original Entered Date: 09/17/2009   Status:
Filed by: CR
Entered by: Hight, Ted
Modified:
Secured    claimed:    $250000.00
Total    claimed:    $250000.00

History:
Details
   23-1
09/17/2009   Claim #23 filed by Jason Aufdermaur, total amount claimed: $250000 (Hight, Ted )

Description:
Remarks:

Creditor: (12104738)
Jason Aufdermaur
Morris Law Firm
1950 North Park Place
Suite 400
Atlanta, Georgia 30339    Claim No: 24
Original Filed Date: 09/17/2009
Original Entered Date: 09/17/2009   Status:
Filed by: CR
Entered by: Hight, Ted
Modified:
Secured    claimed:    $150000.00
Total    claimed:    $150000.00

History:
Details
   24-1
09/17/2009   Claim #24 filed by Jason Aufdermaur, total amount claimed: $150000 (Hight, Ted )

Description:
Remarks:

Claims Register Summary
Case Name: Hidden Lake Academy, Inc.
Case Number: 09-22028-reb
Chapter: 11
Date Filed: 05/14/2009
Total Number Of Claims: 24
   Total Amount Claimed   Total Amount Allowed
Unsecured   $321513.27
Secured   $7478660.88
Priority   $450465.93
Unknown
Administrative
Total   $8250640.08     $0.00

________________________________________

Anonymous · « **Reply #12 on:** September 26, 2009, 12:11:35 AM »

Bankruptcy Up-date: HLA, INC. and Hidden Lake Academy, Inc. Note* : Separate filings, Separate entities.

HLA, INC. Operating reports are three months delinquent to the court. May/June was filed according to the US TRUSTEE inappropriately and reorganization is a bit tardy. The good news is that the US Trustee is aware of Creekside(site was taken down August, Sec.of States Corporate site appears to have no record of Creekside existing) that means they have done their homework, although there is no mention in the US Trustees motion of Mountain Brook. It does not appear that the US Trustee's Office is playing a game of "Chicken" or is preoccupied with "free bar luncheons" or gives a rats ass whether "this is very political"( quote LCSO in ORS documents).
Also note a new May operating report was filed and documented by the court this week.

Below is a portion of the US Trustees motion for dismissal or conversion HLA, INC. For those that were involved in the Class Suit, it will be of no surprise regarding delinquency in turning over financial records.

1. Debtor commenced this case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code on May 14, 2009, and has remained in control of the assets and business operations of the resulting bankruptcy estate as a debtor in possession since that date.
2. Debtor has filed no monthly operating reports accounting for its receipts, disbursements and other operating results during the pendency of the case. Debtor’s failure to file such reports in
1
1 Debtor did file a “Statement Regarding Monthly Operating Reports” on August 10, 2009 [Doc. #47] to which were attached “draft” copies of operating reports for May and June, 2009. However, these reports were unsigned, incomplete, and in some respects incoherent. The accompanying Statement included the following representations:
After reviewing the draft monthly operating reports, counsel believes that the reports reflect an accrual rather than cash basis report. Debtor has recently retained a new business office manager and one of his duties will be completion
of monthly operating reports. Debtor is aware of questions concerning its filing of

Case 09-22026-reb Doc 53 Filed 09/10/09 Entered 09/10/09 18:21:25 Desc Main
Document Page 2 of 3
a timely manner is violative of its statutory duties under 11 U.S.C. § 704(

, made applicable to it as a debtor in possession by 11 U.S.C. §§ 1 106(a)(1) and 1107, and constitutes cause for dismissal or conversion of the case under 11 U.S.C. § 11 12(b)(4)(F)&(H).
3. Debtor has additionally failed to comply with its duties as a debtor in possession by failing to provide the Office of the United States Trustee with requested copies of the following documents: its lease agreement and any other agreements it may have with Ridge Creek, Inc., and/or Creekside Wilderness Academy; Ridge Creek Inc.’s most recent financial statements; and Debtor’s management agreement and any other agreements it may have with Hidden Lake Academy, Inc. Such failure constitutes further cause for dismissal or conversion of the case under 11 U.S.C. § 1112(b)(4)(H).
4. Although the case has been pending for almost four months, Debtor has not proposed a plan of reorganization. Debtor’s delay in proposing a plan of reorganization is detrimental to creditors and constitutes further cause for dismissal or conversion under 11 U.S.C. § 1112(b).
WHEREFORE, the United States Trustee respectfully moves this Court to enter an order dismissing this case or, in the alternative, converting it to a case under chapter 7 of the Bankruptcy Code, and granting such further relief as the Court deems just and proper.

NO "CHICKEN" HERE. Judge Brizendine' s Order on Motion "Authorizing Operations in Accordance with Post Petition Budget and Scheduling Hearing to Continue Continued Operations".

It appears the Judge has clamped down on the funds flowing out of the above entities and Ridge Creek. The Judge has granted the motion to continue operation and expenses ( per post petition budget) thru 10-14-09, the date the hearing is scheduled for dismissal or conversion and other matters before the court. HOWEVER, the Judge has stipulated Buccellato's allowable salary amount from Ridge Creek and also stated that no payments may be made to any insiders of the Debtor, including but not limited to Kenneth Spooner, or to any creditors on behalf of any insider. Also no payments may be made to Buccellato or to any creditors on behalf of Buccellato.

A wise man.

Ripped off · « **Reply #13 on:** September 29, 2009, 03:37:02 PM »

In 1997 I enrolled my child in HLA. For 1.5 years it was a nightmare dealing with HLA & the insurance company. I paid 10's of thousands of dollars to HLA. When my child graduated, I stopped payments because I learned (only then) the councilors were not certified. HLA came after me legally; I obtained an attorney (a very poor one) and lost my case. HLA placed a lean on my house. In 2008 they drained my bank accounts and are now forcing me to sell my house to satisfy my debt to them.
I am flat broke and could use some help from someone.

Whooter · « **Reply #14 on:** September 29, 2009, 03:59:37 PM »

Quote from: "Ripped off"

In 1997 I enrolled my child in HLA. For 1.5 years it was a nightmare dealing with HLA & the insurance company. I paid 10's of thousands of dollars to HLA. When my child graduated, I stopped payments because I learned (only then) the councilors were not certified. HLA came after me legally; I obtained an attorney (a very poor one) and lost my case. HLA placed a lean on my house. In 2008 they drained my bank accounts and are now forcing me to sell my house to satisfy my debt to them.
I am flat broke and could use some help from someone.

Thats too bad. I encourage everyone to read the contracts before enrolling a student. There is another case here on fornits where the parents had an option for a licensed therapist to see their child but opted out due to the extra expenses. Now they are suing because after their kid got expelled for breaking into offices and lost their prepayments. The staff is not typically licensed as the program runs via a “structured model" which is predefined and designed by professionals but actually run and implemented by non professional people. Sort of like any other business, they hire PhDs to design and define a product and then hire minimum wage people to actually do the work. If people opt for a therapist it is extra.

Your mistake was to stop payments because this put the power in HLAs court since you decided to take the law into your own hands. Most judges do not like this, you should have taken them to court if you felt the contract terms were not met.

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