Case:12-24882-ABC Doc#:221 Filed:07/24/12

Entered:07/24/12 15:10:22 Page1 of 3

UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF COLORADO IN RE: Cordillera Golf Club, LLC Tax ID / EIN: 27-0331317 Debtor. ) ) ) ) ) )

Case No. 12-24882-ABC Chapter 11

UNITED STATES TRUSTEES LIMITED OBJECTION TO DEBTORS MOTION FOR AN ORDER (I) APPROVING CONTINUED USE OF CASH MANAGEMENT SYSTEM, (II) AUTHORIZING WAIVER OF CERTAIN BANK ACCOUNT AND RELATED REQUIREMENTS OF THE OFFICE OF THE UNITED STATES TRUSTEE FOR THE DISTRICT OF DELAWARE, AND (III) WAIVING THE REQUIREMENTS OF 11 U.S.C. 345(B) ON AN INTERIM BASIS The United States Trustee (the UST) by and through undersigned counsel, hereby objects to the Debtors Motion for an Order (I) Approving Continued Use of Cash Management System, (II) Authorizing Waiver of Certain Bank Account and Related Requirements of the Office of the United States Trustee for the District of Delaware, and (III) Waiving the Requirements of 11 U.S.C. 345(b) on an Interim Basis [Docket # 6] (the Motion), and as grounds therefore states as follows: 1. On June 26, 2012, Cordillera Golf Club, LLC (the Debtor) filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the District of Delaware. The case was subsequently transferred to the District of Colorado on July 16, 2012. The Debtor remains a Debtor-in-Possession and an Unsecured Creditors Committee was appointed in the above-captioned case on July 6, 2012. On June 26, 2012, the Debtor filed its Motion seeking wavier of the requirements of Section 345(b). A hearing date is currently scheduled on July 26, 2012, on the Debtors Motion. Section 345(b) of the Code provides: (b) Except with respect to a deposit or investment that is insured or guaranteed by the United States or by a department, agency, or instrumentality of the United States or backed by the full faith and credit of the United States, the trustee shall require from an entity with which such money is deposited or invested (1) a bond (A) in favor of the United States; (B) secured by the undertaking of a corporate surety approved by the United States trustee for the district in which the case is pending; and

2.

3.

4.

Case:12-24882-ABC Doc#:221 Filed:07/24/12

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(C) conditioned on (i) a proper accounting for all money so deposited or invested and for any return on such money; (ii) prompt repayment of such money and return; and (iii) faithful performance of duties as a depository; or (2) the deposit of securities of the kind specified in section 9303 of title 31; unless the court for cause orders otherwise. 5. The UST objects to Debtors Motion for the following reasons: A. U.S. Bank Accounts. The Debtor states the average annual revenue that is processed through its Cash Management System is approximately 7.7 million. [See the Motion 8]. The Debtor is requesting a waiver of certain bank account and related UST requirements. [See the Motion 26, 28]. Although U.S. Bank is designated as an Authorized Depository in the District of Colorado, the Debtors accounts may not be adequately insured under the present circumstances as the current FDIC limit is $250,000. The UST requests the Debtor convert all U.S. Bank accounts to Debtor-In-Possession (DIP) accounts which will insure the pledge of collateral sufficient to cover the estate. However, the UST will allow continued use of current bank account numbers. Alpine Bank Accounts. This bank is not a bank designated as an Authorized Depository. It is unknown if the bank account balances will exceed the FDIC limits, which are currently $250,000. If the bank account balances in the Alpine Bank accounts exceed or will exceed the FDIC limits, the accounts should be closed and DIP accounts opened at an Authorized Depository.

B.

Wherefore, the UST requests that the Court deny the Motion and grant any other and further relief as may be appropriate. Dated: July 24, 2012 Respectfully submitted, RICHARD A. WIELAND UNITED STATES TRUSTEE /s/ Paul V. Moss By: Paul V. Moss, #26903 Trial Attorney for the U.S. Trustee 999 18th Street, Suite 1551 Denver, Colorado 80202 (303) 312-7995 telephone (303) 312-7259 facsimile Paul.Moss@usdoj.gov

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CERTIFICATE OF SERVICE I hereby certify that on the date set forth below a copy of the UNITED STATES TRUSTEES LIMITED OBJECTION TO DEBTORS MOTION FOR AN ORDER (I) APPROVING CONTINUED USE OF CASH MANAGEMENT SYSTEM, (II) AUTHORIZING WAIVER OF CERTAIN BANK ACCOUNT AND RELATED REQUIREMENTS OF THE OFFICE OF THE UNITED STATES TRUSTEE FOR THE DISTRICT OF DELAWARE, AND (III) WAIVING THE REQUIREMENTS OF 11 U.S.C. 345(B) ON AN INTERIM BASIS was served by deposit in the United States Mail, postage prepaid to the following parties: Dated: July 24, 2012 Cordillera Golf Club, LLC 97 Main Street Suite E202 Edwards, CO 81632 Brittany J. Nelson Erika L. Morabito 3000 K St., N.W. Ste. 600 Washington, DC 20007-5109 Christopher Celentino Dawn A. Messick Mikel R. Bristrow 402 W. Broadway Ste. 2100 San Diego, CA 92101-3542 Joseph M Barry Donald J. Bowman, Jr. 1000 N. King Street Wilmington, DE 19801 Jay H. Ong Joseph J. Wielebinski Russell L. Munsch Munsch Hardt Kopf & Harr, PC 500 N. Akard Street Suite 3800 Dallas, TX 75201-6659 Harvey Sender David Wadsworth 1660 Lincoln St. Ste. 2200 Denver, CO 80264 Risa Lynn Wolf-Smith 555 17th St. Ste. 3200 Denver, CO 80201

/s/ Beverly Smith Office of the United States Trustee