Den-Mark Properties, LLC

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
RALEIGH DIVISION
IN RE:
DEN-MARK PROPERTIES, LLC,
DEBTOR
CASE NO.
08-04084-8-RDD
ORDER DENYING APPROVAL OF DISCLOSURE STATEMENT AND
DENYING CONFIRMATION OF THE PLAN OF REORGANIZATION
Pending before this Court is the Disclosure Statement (the “Disclosure Statement”) and the
Plan of Reorganization (the “Plan”) filed by Den-Mark Properties, LLC 	(“Den-Mark”) on
December 15, 2008 and the Statement of the Bankruptcy Administrator Regarding the Debtor’s Plan
of Reorganization (the “BA Statement”) filed by the Bankruptcy Administrator (the “BA”) on
January 29, 2009 and SunTrust Bank’s Response and Objection to Disclosure Statement and
Debtor’s Plan of Reorganization (the “SunTrust Objection” collectively with the BA Statement
referred to herein as the “Objections”) filed by SunTrust Bank (“SunTrust”) on February 17, 2009.
A hearing on the Disclosure Statement, the Plan, and the Objections was conducted on March 3,
2009 in Wilson, North Carolina.
SO ORDERED.
SIGNED this 28 day of April, 2009.
________________________________________
Randy D. Doub
United States Bankruptcy Judge
____________________________________________________________
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The Court, having considered the Disclosure Statement, the Plan, the Objections, and the
arguments of counsel, hereby finds that the Disclosure Statement and Plan fail to provide adequate
information as required by 11 U.S.C. § 1125 and 11 U.S.C. § 1129. 	Accordingly, the approval of
the Disclosure Statement is DENIED and confirmation of the Plan is DENIED.
Based upon the hearing of the objections and arguments of counsel, Den-Mark Properties,
LLC shall file an Amended Disclosure Statement and Amended Plan of Reorganization. 	The
Amended Disclosure Statement and Amended Plan of Reorganization shall provide creditors and
parties-in-interest with additional relevant information, including but not limited to the following:
1. 	Disclosure of specific mailing address for each of the properties addressed in the
Amended Disclosure Statement and Amended Plan;
2. 	Additional information with respect to the proposed private sale and/or liquidation
of the real properties including a timeline and proposed costs of such sales, if any;
3. 	Disclosure of the manner in which Den-Mark intends to implement the sale of any
properties should the properties not be sold through a private sale;
4. 	An explanation as to the reason why certain properties are included as part of the
Amended Plan and Amended Disclosure Statement if the properties were sold prior
to the filing such pleadings;
5. 	Disclosure of any sales of homes, lots, and/or other property of Den-Mark from the
petition date through March 2, 2009;
6. 	Disclosure as to the impact of this Court’s determination that the second deed of trust
in favor of SunTrust, with respect to certain properties, was invalid and the status of
the appeal of this Court’s order in connection with that proceeding;
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7. 	Disclosure of all insider claims, transfers, transactions, loans, or distributions since
June 18, 2008;
8. 	Disclosure of all post-petition claims, transfers, transactions, loans, or distributions
to or from Den-Mark Construction, Inc., Marcus Edwards Development, Inc., Den-
Mark Homes SC, Inc., M & D Development, LLC, or any other entity in which
Dennis Cyrus or Marcus Edwards have a controlling interest;
9. 	Disclosure of all leases to which Den-Mark is a party, the expiration date of such
leases, and the monthly amount Den-Mark receives on account of the leases;
10. 	Disclosure of sales projections moving forward;
11. 	Disclosure of the status of office operations;
12. 	Disclosure of any administrative claimants who have provided goods or services
since the Petition Date and an estimate of the amount of each of their claims;
13. 	Disclosure of any projected additional administrative claimants and costs; and
14. 	Disclosure of changes in fair market values of properties since the filing of the
petition and the projections of further increases or decreases in fair market values of
the properties over the next 12 months.
SO ORDERED.
END OF DOCUMENT
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