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Robert N. Michaelson Rich Michaelson Magaliff Moser, LLP 340 Madison Avenue, 19th Floor New York, NY 10173 Tel: 212.220.9404 Fax: 212.913.9642 and A. Raymond Hamrick Hamrick & Evans, LLP 111 Universal Hollywood Drive Suite 2200 Universal City, CA 91608 Tel: 818.763.5292 Fax: 818.763.2308 Attorneys for Hannibal Pictures, Inc. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------------x In re: SONYA TREMONT-MORGAN, et al. Debtors. ------------------------------------------------------x Chapter 11

Hearing Date: April 3, 2013 Hearing Time: 10:00 a.m.

Case No. 10-16132 (SCC) SUBSTANTIVELY CONSOLIDATED

STATEMENT OF HANNIBAL PICTURES, INC. IN FURTHER SUPPORT OF RENEWED MOTION FOR THE APPOINTMENT OF A CHAPTER 11 TRUSTEE TO: THE HONORABLE SHELLEY C. CHAPMAN, UNITED STATES BANKRUPTCY JUDGE: Hannibal Pictures, Inc. (Hannibal), by its undersigned counsel, submits this statement in further support of its renewed motion for the appointment of a chapter 11 trustee in the abovecaptioned case and respectfully represents as follows:. 1. On November 17, 2010 (the Filing Date), the Debtor, Sonja Tremont-Morgan,

filed a chapter 11 petition for relief (the Petition) with this Court for the primary purpose of staying enforcement of a final judgment dated September 1, 2009, against her and in favor of Hannibal (the Hannibal Judgment) in the principal amount of $6,816,294 plus punitive damages
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of $250,000, interest and costs in the matter of Hannibal Pictures, Inc. v. Sonja Productions, Inc. and Sonja Tremont-Morgan in the United States District Court for the Central District of California (Case No. CV-06-1814 WDK) for a total judgment amount of $7,066,294, plus accruing interest. 2. By motion dated January 20, 2011 (Docket # 16) Hannibal moved this Court for the

appointment of a chapter 11 trustee (the Trustee Motion). However, the Court declined to rule and, instead, allowed the Trustee Motion to be continued, sine dine, until such time as facts and circumstances justified a further hearing. Hannibal subsequently renewed the Trustee Motion and, at hearing held on November 30, 2012, the Court again declined to rule and the Trustee Motion was again continued sine dine. By a directive of the Court, the renewed Trustee Motion is now scheduled for hearing on April 3, 2013, at 10:00 a.m. 3. In the nearly 30 months since the Filing Date, this case has been plagued by

numerous unjustified delays that have prevented any of the Debtors pre-petition creditors from being paid even though the Debtor was solvent on the Filing Date and remains solvent today. It is submitted that these delays are the product of two factors. One is the Debtors inherent conflict of interest represented by her unwillingness to recognize the distinction between her dual roles as both a debtor and debtor-in-possession and the fiduciary duty that imposes on her to act in the best interests of her creditors, even if doing so conflicts with her personal desires such as maintaining her complete ownership of an entirely unencumbered Manhattan townhouse (the Townhouse) valued at approximately $10 million. The other is a persistent and seemingly intractable conflict between the Debtor and her former husband, John A. Morgan, that interferes with her ability to convey the Debtors interest in a residence in France (the French Property) with a value to her estate of several million dollars. Both factors justify the appointment of a chapter 11 trustee who will be able

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to act swiftly and independently to see that the Debtors creditors, who have waited far too long, are finally paid. 4. At the aforementioned November 30, 2012, hearing and at a later hearing on January

27, 2013, the Court heard Hannibal complain that the process of selling the Townhouse and the French Property (a process that the Court had directed and the Debtor had agreed to) was taking far to long and was emblematic of the Debtors failure to properly exercise her fiduciary duties to her creditors as a debtor-in-possession at the expense of pursuing her personal and highly conflicting goal of maintaining ownership of the Townhouse. The Court admonished the Debtor on both occasions that she must actively do what was necessary to address this situation and stated, in essence, that if she failed to do so in an appropriately and timely manner that that the appointment of a trustee was a genuine option. 5. It has now been four months since the November 30, 2012, hearing and two months

since the January 27, 2013, hearing and there has been little, if any, progress. Indeed, with respect to the sale of the French Property, there has been substantial setback. The Townhouse is still not listed for sale because the Debtor is unable or unwilling to negotiate the terms of a simple listing agreement with the broker The Corcoran Group (Corcoran), insisting on an unduly high listing price and other terms that Corcoran does not agree with despite the fact that this Court expressly stated that the listing price was to be set by Corcoran, and the French Property has not been sold because the Debtor and Mr. Morgan are locked in disputes concerning various terms and conditions of sale such as the retention of a French notary that caused a lucrative sale to fall through. Meanwhile, Hannibal and other creditors continue to wait for payments that could have and should have been made years ago. The Debtors continuing strategy of repeated delays geared at promoting her selfish interests at the expense of her creditors is an abuse of the bankruptcy process that must

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not be allowed to continue. The only viable solution is to remove the Debtor from control of her estate based on her demonstrated unwillingness or inability to properly exercise her fiduciary duties as a debtor-in-possession and replace her with a chapter 11 trustee who will act in accordance with the requirements of the Bankruptcy Code. Simply put, the Debtor has overplayed her hand. The Debtor had multiple opportunities to properly discharge her fiduciary duties as a debtor-inpossession but failed to do so. It is now time to put this matter in the hands of someone who can get the job done fairly and promptly. WHEREFORE, Hannibal respectfully requests that an order be entered (i) granting the Trustee Motion and (ii) providing such other and further relief as is just and proper. Dated: April 1, 2013 New York, New York Rich Michaelson Magaliff Moser, LLP 340 Madison Avenue, 19th Floor New York, NY 10173 Tel: 212.220.9404 Fax: 212.913.9642 /s/ Robert N. Michaelson and Hamrick & Evans, LLP 111 Universal Hollywood Drive Suite 2200 Universal City, CA 91608 Tel: 818.763.5292 Fax: 818.763.2308 Attorneys for Hannibal Pictures, Inc.

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