Gina Plaza, LLC

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In re: 	Case No. 07-17595PM
Chapter 11
Gina Plaza, LLC,
Debtor.
MEMORANDUM OF DECISION
This matter came before the court for hearing on January 15, 2009, for
consideration of the Debtor's Disclosure Statement as well as the Motion of IQ
Systems, Inc. ("IQ"), a secured creditor, to dismiss this case. Neither a representative
of the Debtor nor its attorney, Steven E. Mirsky ("Counsel"), appeared. After review of
the record herein and the arguments of IQ and the United States Trustee, the court
will grant IQ's Motion.
The handling of this case has been nothing short of abysmal. The Debtor filed
its case on August 13, 2007. By Order dated September 21, 2007, the Debtor was
authorized to employ Counsel. In January 2008, the employment of special counsel,
Richard D. Mirsky and Eric J. Pelletier, was authorized. The docket of this Chapter
11 case was virtually stagnant until IQ moved to convert the case in August 2008.
Following a hearing, the court entered an order that deferred dismissal of the case so
as to permit the filing of a
bona fide Disclosure Statement and Plan before December
1, 2008. On November 30, 2008, the Debtor filed the Disclosure Statement that was
the subject of the January 15, 2009, hearing. The United States Trustee filed a
Date signed January 16, 2009
Entered: January 16, 2009 Case 07-17595 Doc 88 Filed 01/16/09 Page 1 of 2

comprehensive objection to approval of the Disclosure Statement, noting that the
Disclosure Statement (1) failed to provide adequate information regarding the
Debtor’s postpetition financial affairs; (2) failed to list all of the Debtor’s assets; (3)
failed to provide a liquidation analysis; (4) failed to provide a budget of the Debtor’s
projected future income and expenses; (5) failed to include certain secured and
unsecured creditors; (6) failed to address the claim of the equity interest holders; and
(7) failed to explain tax consequences. Also noted by the United States Trustee was
that Counsel borrowed a Disclosure Statement from another case and failed to modify
same to comport with the Debtor's particular circumstances. For example, on page 32
of the Disclosure Statement, the Debtor states: "The Debtor has increased its food and
beverage inventory since the date of filing, however, because of the perishable nature
of this inventory, the net asset increase is negligible." The Debtor is not in the food
and beverage industry. Further, there is reference on the same page to an Amended
Proof of Claim filed by the Internal Revenue Service on May 13, 2004. No such claim
was filed in this case and, for that matter, the case was not filed until three years
later.
Accordingly, an appropriate order will be entered dismissing this case, retaining
jurisdiction to enable the court to examine all fees paid to Counsel and special counsel
to date and requiring fee applications to be filed.
cc: 	Debtor
Debtor's Counsel
IQ Systems, Inc.
Office of the United States Trustee
All Creditors
End of Memorandum of Decision
Case 07-17595 Doc 88 Filed 01/16/09 Page 2 of 2