The attorney controlling the purse strings in the three-year old Ada’s Inc. Chapter 11 reorganization case is asking to be paid while the law firm of Calvo and Clark special counsel to Ada’s Inc. have asked for their fees to be sealed.
The Journal requested in writing on Nov. 19 that Calvo and Clark’s account be entered into court.
Meanwhile the bank holding millions in loan notes has started selling off estate properties.
George M. Butler partner in the law firm of Butler Telford Butler asked Judge Robert J. Feris of the U.S. Bankruptcy Court of Guam on Nov. 9 for permission to make payment to himself for services as trustee for Ada’s Inc. for nearly a year.
Butler was appointed Ada’s trustee on Oct. 31 2003. In order to avoid potential conflicts regarding the selection the court held a hearing on Nov. 14 2003 to allow parties to raise concerns. None did and the court approved Butler’s appointment on Nov. 20 2003.
Since that time documents stated Butler has processed hundreds of check requests while each month obtaining court approval to pay company debts. He also oversaw the sale of estate’s real property for which the proceeds have been deposited into an account for future payment of both secured and unsecured creditors.
Butler is invoicing Ada’s Inc. total of $41 017.60. Invoices stated his professional rate is $200 per hour.
In other developments First Hawaiian Bank has foreclosed on a portion of the Ada’s Commercial Center in Hagatna. On Aug. 27 Feris lifted a stay on all Ada’s Inc. real properties paving the way to bank foreclosures as mortgages amounting to $7 453 452.97 are in default.
Attorney Thomas Moody partner in the law firm of Klemm Blair Sterling & Johnson LLC posted legal notice that his client First Hawaiian Bank had foreclosed on building A of the commercial center.
The property secured a note with a principal balance of $445 932.41 as of June 30. The fair market appraisal value on July 19 was set at $570 000 by appraisers for the bank The Captain Co. Inc.
Butler was appointed trustee after what court documents stated was an exhaustive search to find a qualified attorney willing to take on this difficult case involving a prominent Guam family. He maintained as trustee that Ada’s Inc. could not be reorganized and had to sell real properties to satisfy lenders and unsecured creditors.
Butler fended off an attempt to have him removed in the case by Cesar C. Cabot attorney for Agnes A. Sgro and the Agnes A. Sgro Trust prior to the Oct. 1 sale of arguably one of the estate’s most valuable assets the Dededo Pay-Less property.
That property sold at public auction for $2.4 million to Jae Sung Park following a fierce bidding war with attorneys representing the Calvo family owners of PayLess Markets Inc. Park is a Korean businessman and property holder who owns and operates Korean TV Inc. on Guam.
There are 64 different parties with claims against Ada’s Inc. Under a Chapter 11 reorganization creditors are allowed to take a more active role in fashioning the liquidation of the assets and the distribution of the proceeds. MBJ