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In re Blue Stone Real Estate, Construction & Development Corporation

United States Bankruptcy Court for the Middle District of Florida
392 B.R. 897 (2008)


James DeMaria was the owner and principal of Blue Stone Real Estate, Construction & Development Corporation (Blue Stone) (debtor). Blue Stone filed for reorganization under chapter 11 of the bankruptcy code. While acting as the debtor in possession, DeMaria repeatedly engaged in uncooperative and grossly incompetent behavior. The United States Trustee Program filed a motion under § 1104(a) of the bankruptcy code seeking to appoint a chapter 11 trustee, alleging that DeMaria’s conduct rose to the level of fraud. Following the United States trustee’s motion, Blue Stone requested the court’s approval to appoint Steven Oscher, a certified public accountant and bankruptcy consultant, as Blue Stone’s chief restructuring officer (CRO). Oscher was an independent, experienced, and well-respected bankruptcy expert. The United States trustee argued that its motion to appoint a chapter 11 trustee prevented Blue Stone from seeking any changes to management.

Rule of Law


Holding and Reasoning (McEwen, J.)

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