B-Day Parties are Important, Even When the Developer is Bankrupt
Bernard Real Estate & Development, a developer which filed for Chapter 11 in Jan’08, had its case dismissed in July’08. The US Trustee first moved for conversion or dismissal some time in June.
One of the creditors, Malbur Investments applied for a Rule 2004 examination of Mr Stephen Bernard (the principal of the company). According to court filings, Mr Bernard testified that he had files at his house which would document his claims that he owed Malbur nothing and that he had no books and records but operated out of his check register. He also left the examination (which started around 9am) early at 12:40 pm. Reason given: he had to attend his wife’s birthday party.
