Monterey Mechanical Appeals Los Osos Bankruptcy

The LOCSD's bankruptcy case isn't over yet. Monterey Mechanical has at the last minute appealed the judgement of the Federal Bankruptcy Court to the 9th District Court of Appeals, where to pull any information out of them down in Ventura, you need to bring your own portable copier to do it at the desk, or hire a service that does this for you.

We have a long wait. The briefing schedule will be determined in November or December and the hearing schedule determined in 2013.

"Did the Bankruptcy Court err in—" is repeated the seven times with the same questions as before (my paraphrasing, You can read the document in full here):

1. —overruling Monterey Mechanical's objection to the assertion that there was a fraudulent transfer of District assets to SLO County in violation of the bankruptcy code?

2. —accepting the CSD's appraisal of a property that might be more valuable to the creditor than stated (the mid-town or Tri-W property)?

3. —relying on Bruce Buel's testimony that the proceeds from the sale of District property would not be available to creditors?

4. —rejecting Monterey Mechanical's assertion of unfairness in the manner of repaying creditor's?

5. —rejecting Monterey Mechanical's statement that the bankruptcy plan was not proposed by the CSD in good faith because the Prohibition Zone is getting the benefit of property value enhancement and protection while paying nothing towards the debt, the County is being insulated from liability of the District's debts through confirmation of the plan rather than dissolution of the District which would pay the debt.

6. —confirming a plan that is not in the best interests of the creditors as the creditors would get 100 cents on the dollar through state law remedies if the bankruptcy plan was rejected.

7 —failing to decide many pivotal questions of state law thereby making the basis for its conclusion simply that this plan "was in the best interests of the creditors?"

Apparently this is not the last place they can go to appeal either. The CSD's coffers drain while Monterey Mechanical fiddles.