Salton Land Development, LLC

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UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
In re:
Salton Land Development, LLC,
Debtor(s).
Case No: 6:08-bk-26258-TD
Chapter: 11
MEMORANDUM OF DECISION AND ORDER TO
SHOW CAUSE WHY CASE SHOULD NOT BE
DISMISSED WITH BAR
Date: June 4, 2009
Time: 2:30 p.m.
Location: Courtroom 303
The Debtor filed chapter 11 on November 19, 2008. This is essentially a single asset
real estate case involving several thousand acres of raw, undeveloped desert property. The
Debtor filed its proposed Disclosure Statement on February 17, 2009. A hearing thereon was
scheduled for May 7, 2009 at 2:30 p.m.
Secured creditors D & A Intermediate-Term Mortgage Fund III, LP, Integrity Capital,
Inc., and Auen Foundation each filed written opposition to the Debtor’s Disclosure Statement.
All objections contained in each such written opposition are sustained. It would appear from
Debtor’s papers that any possible Debtor action proposed is both speculative and illusory.
The Debtor’s proposed Disclosure Statement is practically meaningless. It represents
an empty promise, reflecting no source of funding, no constructive business activity, and no
FILED & ENTERED
MAY 01 2009
CLERK U.S. BANKRUPTCY COURT
Central District of California
BY DEPUTY CLERK	penning
Case 6:08-bk-26258-TD Doc 30 Filed 05/01/09 Entered 05/01/09 15:21:37 Desc
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promise of reorganization or other valid chapter 11 purpose of any substance. Instead, it
simply seeks approval of an open-ended period for Debtor to address more than $17 million in
acknowledged secured debt, all in default, all awaiting foreclosure.
No appearance is necessary at the May 7, 2:30 p.m. hearing.
Debtor’s Disclosure Statement contains no evidence of any kind to describe Debtor’s
financial history. There is no meaningful or useful discussion of any substantive business
activity, past, present, or projected.
It would appear from Debtor’s proposed Disclosure Statement and other filings herein
that this case should be dismissed with a substantial bar against refilling.
The court will dismiss this case unless cause is shown in writing sufficient to
demonstrate persuasively the benefit to the estate and its creditors of any other proposed
course of action. Any such response must be filed and served on all interested parties not
later than May 21, 2009. Written opposition to any such response may be served and filed not
later than May 28, 2009.
The Disclosure Statement and status conference hearings are continued to June 4,
2009 at 2:30 p.m.
United States Bankruptcy Judge
DATED: May 1, 2009
Case 6:08-bk-26258-TD Doc 30 Filed 05/01/09 Entered 05/01/09 15:21:37 Desc
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NOTE TO USERS OF THIS FORM:
1) Attach this form to the last page of a proposed Order or Judgment. Do not file as a separate document.
2) The title of the judgment or order and all service information must be filled in by the party lodging the order.
3) Category I. below: The United States trustee and case trustee (if any) will always be in this category.
4) Category II. below: List ONLY addresses for debtor (and attorney), movant (or attorney) and person/entity (or
attorney) who filed an opposition to the requested relief. DO NOT list an address if person/entity is listed in category I.
NOTICE OF ENTERED ORDER AND SERVICE LIST
Notice is given by the court that a judgment or order entitled (specify) MEMORANDUM OF DECISION
AND ORDER TO SHOW CAUSE WHY CASE SHOULD NOT BE DISMISSED WITH BAR
was entered on the date indicated as AEntered@ on the first page of this judgment or order and will be served
in the manner indicated below:
I. SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (ANEF@) B Pursuant to controlling
General Order(s) and Local Bankruptcy Rule(s), the foregoing document was served on the following
person(s) by the court via NEF and hyperlink to the judgment or order. As of 5/1/09, the following person(s)
are currently on the Electronic Mail Notice List for this bankruptcy case or adversary proceeding to receive
NEF transmission at the email address(es) indicated below.
Robert L Fisher on behalf of Creditor Auen Foundation
rfisher@bkolaw.com
Pamela Labruyere on behalf of Creditor Integrity Capital, Inc.
pamela@sgsslaw.com
Elizabeth A Lossing on behalf of U.S. Trustee United States Trustee (RS)
elizabeth.lossing@usdoj.gov
Daniel J McCarthy on behalf of Debtor Salton Land Development, LLC
dmccarthy@hillfarrer.com
Thomas E McCurnin on behalf of Creditor Auen Foundation
tmccurnin@bkolaw.com
Richard J Pekin on behalf of Creditor D&A Intermediate Term Mortgage Fund III, L.P.
rpekin@foxjohns.com
United States Trustee (RS)
ustpregion16.rs.ecf@usdoj.gov
Service information continued on attached page
II. SERVED BY THE COURT VIA U.S. MAIL: A copy of this notice and a true copy of this judgment or order
was sent by U.S. Mail to the following person(s) and/or entity(ies) at the address(es) indicated below:
Debtor
Salton Land Development, LLC
73-755 County Club Drive
Palm Desert, CA 92260
Creditor
Davide Holdings, LLC
249 Las Entradas
Santa Barbara, CA 93108
Case 6:08-bk-26258-TD Doc 30 Filed 05/01/09 Entered 05/01/09 15:21:37 Desc
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Creditor
Tom Ward
All One Valley Inc.
73-070 Ramon Rd.
Thousand Palms, CA 92276
Creditor
Dave Baron
800 East Tahquitz Canyon Way
Palm Springs, CA 92262
Service information continued on attached page
III. TO BE SERVED BY THE LODGING PARTY: Within 72 hours after receipt of a copy of this judgment or
order which bears an AEntered@ stamp, the party lodging the judgment or order will serve a complete copy
bearing an AEntered@ stamp by U.S. Mail, overnight mail, facsimile transmission or email and file a proof of
service of the entered order on the following person(s) and/or entity(ies) at the address(es), facsimile
transmission number(s) and/or email address(es) indicated below:
Service information continued on attached page
Case 6:08-bk-26258-TD Doc 30 Filed 05/01/09 Entered 05/01/09 15:21:37 Desc
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