Today we filed a Complaint against People’s Bank and Trust Company of Picket County. The Complaint alleges that in September of 2008 Eastern Livestock gave the Bank a mortgage on approximately 89 acres of Eastern’s real estate in Lanesville, Indiana as security for a loan to Thomas and Patsy Gibson in the amount of $1,500.000 dollars. The property in Lanesville has a value of approximately $750,000.00. At the same time as Eastern gave its mortgage, Tom and Patsy Gibson mortgaged additional real estate owned by them personally. Our Complaint alleges that Eastern received no consideration in exchange for mortgaging its three quarter of a million dollars worth of real estate which solely benefited the Gibsons. The Bank claims, alternatively, that some, if not all the money it loaned to the Gibson’s was used by the Gibson’s to repay loans they owed to Eastern. Our response to that argument is essentially that money was flowing in and out of Eastern to Tom Gibson and his affiliated companies so rapidly at that time (and after that) that any actual value received by Eastern was illusory because the money ended up right back in Gibson’s hands. It will be up to the Court to decide which of us is correct.
Agenda for Meeting with
Eastern Livestock Creditors
on November 22, 2011
1. Update regarding the status of the Chapter 11case receipts and disbursements.
a. Recoveries to date of funds from various sources, and planned efforts to make additional recoveries.
(A) preference analysis
(B) collection actions
(b) Expenses to date in administration of the case.
b. Status of negotiations with the United States Attorney about the seized funds in the Your Community Bank account
c. Report on the GIPSA bond funds.
2. Changes in the Reporting of Accounts Receivable.
a. Discussion of changes that have occurred based on the discovery of additional ELC purchase, sale, and shipping records
b. Other changes reflect DES’ characterization of recoverable amounts with respect to amounts that were not paid to ELC.
3. Discovery Repository. The Trustee has established an online repository for discovery requests, responses, and produced documents. Access to the site is limited to those who provide a signed Acknowledgement of the terms and conditions of the Confidentiality Stipulation and the Court's order on Discovery Protocols. Training sessions for using the site are scheduled for 4 p.m. (EST) on November 16 and 29. The Trustee urges all those who have produced discovery responses and documents to send their materials to Harmony Mappes (firstname.lastname@example.org, (317) 237-8246) at Baker & Daniels who will coordinate uploading them to the website.
4. Superior Litigation. A brief discussion of the Superior Livestock litigation.
5. Discussion of potential claims against Fifth Third Bank. One or more representatives of the Trustee's special counsel at the Hoover Hull law firm will address the current status of their investigation and assessment of potential claims against Fifth Third.
6. Mediation. Discussion concerning a mediator and procedures to expedite the resolution of claims in litigation.
7. Claims. A preliminary analysis of claims filed.
8. Chapter 11 Plan Negotiations. A discussion of what form a possible Chapter 11 liquidation plan could take.
NOTICE OF EASTERN LIVESTOCK LLC CASE STATUS UPDATE CONFERENCE CALL
TUESDAY, NOVEMBER 22, 2011 10:30 A.M. EST
The Trustee will hold a Case Status Update Conference on Tuesday, November 22, 2011 beginning at 10:30 A.M. EST. Participation may be by telephone using the following conference participant phone number:
Participants, US/CANADA 888-466-4587
Please dial in 5 to 10 minutes prior to the scheduled start time of the call so that an operator may receive your name and put you into the conference call. If you have any questions, please contact counsel for the Trustee, Terry Hall, at 317-237-1230 or at email@example.com. If you are interested in participating via Microsoft LiveMeeting or video conference, please call or email Terry Hall before Monday at 10:00 am EST on November 21. In order to participate in a video conference you will need to have your IT people coordinate no later than noon Monday with Kent Karlsson, Audio Visual Specialist, Baker & Daniels LLP, 317.237.1308 (firstname.lastname@example.org).
We will be holding an open call to discuss many aspects of the Eastern Livestock Bankruptcy on November 22nd, 2011 from 11 am to approximately noon EST. We will publish an agenda and a dial in number in a future blog entry at least 24 hours prior to the call, so check back here if you have an interest in listening to the call. All information which is discussed on the call will be deemed to be subject to Rule 408 of the Federal Rules of Evidence which prohibits some types of disclosures from being used in as evidence for purposes more particularly described in the Rule.