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THE EXAMINER
The Examiner, G. Ray Warner, was appointed under the Bankruptcy Code on April 14, 2003 upon the Motion of the United States Trustee and William Maloof to investigate irregularities in the bankruptcy proceedings. He was given his specific scope of investigation on April 28, 2003, and directed to submit his report no later than June 6, 2003. His report focused on three issues: whether BFCA breached any duty to Level Propane by refusing to surrender certain bankruptcy paperwork it had prepared which would have permitted Level Propane to file a defensive “pre-emptive” Chapter 11 petition, by which means it could control the proceedings under the leadership of William Maloof, whether the post-petition management destroyed key corporate documents and whether BFCA had a conflict of interest at any point in its representation of Level Propane.
Repeatedly in his report, the Examiner noted that the time allotted for the investigation was inadequate and that others would have to continue what he had begun. The Examiner also noted that BFCA never provided emails for the critical June, 2002 period when Level Propane was pulled into bankruptcy by the Bank Group’s involuntary Chapter 7 petition, noting further that BFCA claimed the emails were unavailable due to a system change-over.
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