Legacy Estate Group U.S. Trustee ordered to appoint Chapter 11 trustee

By Caroline Salls

Pittsburgh, Oct. 3 - Legacy Estate Group, LLC's U.S. Trustee was ordered to appoint a trustee for the company's Chapter 11 case following a request by creditor John Bryan to either convert the case to Chapter 7 or appoint a trustee, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of California.

In the motion, Bryan said terminating the existing administrative structure of the case is in the best interest of the company's creditors and the estate because although Legacy is not earning income, the company is experiencing "continued loss" due to administrative and professional fees.

Bryan also asked the court to appoint a trustee in the case since the only business left for the bankruptcy estate is to evaluate and pursue causes of action and objections to claims and to disburse any available proceeds to creditors.

"A trustee would be competent to perform all of these tasks, while there is serious doubt about [Legacy's] ability to perform any of them," Bryan said in the motion.

Legacy, a St. Helena, Calif., subsidiary of Connaught Capital Partners LLC, filed for bankruptcy on Nov. 18, 2005. Legacy's Chapter 11 case number is 05-14659.

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