22342 Avenida Empresa, Suite 200 Rancho Santa Margarita, CA 92688 1-949-766-8787

PPA Holdings, LLC

This website page provides information on the status of the cases of PPA Holdings, LLC and its related bankruptcy cases. The information on this page may change and the Bankruptcy Trustee will update the information accordingly. Bankruptcy trustees are prohibited from providing legal advice and in the event creditors require legal advice they are urged to retain experienced bankruptcy counsel.

PPA Holdings, LLC and its related entities were primarily in the business of purchasing, rehabilitating and operating multi-family apartment complexes in California and Arizona. After acquiring, fully refurbishing and operating each apartment complex for some time, the complexes would either be sold or refinanced.

PPA Holdings and its related entities held title to 51 properties, including a commercial property which served as the Debtors’headquarters located at 3626 Pacific Coast Highway, Long Beach, California, and a residence. A listing of all the Properties held by PPA Holdings and its related entities is attached hereto.

Property Listing

RECENT ACTIVITY

CASE IS FULLY ADMINISTERED:

All assets in this case have now been fully administered. The U.S. Trustee recently approved the Trustee’s Final Report and Account (“Final Report”) and the Final Report was filed with the Court on December 2, 2016.

A hearing on the Trustee’s Final Report is scheduled for February 2, 2017 at 10:30 a.m. in Courtroom 5A of the U.S. Bankruptcy Court located at 411 W Fourth Street, Santa Ana, California, 92701. Creditors are not required to appear at this hearing.

All Creditors should have or will receive a Notice of the above hearing. The Notice contains the hearing information as well as the proposed distribution to Creditors. A link is provided below which contains a copy of the Notice and the full Final Report. Please note that the Final Report is in excess of 1,500 pages. The Notice contains the same information as the Final Report but does not have the supporting exhibits attached.

After the February 2, 2017 hearing and upon receipt of an entered Court Order, the Trustee will issue dividend checks to Claimants pursuant to the Final Report.

Assuming the Final Report is approved by the Court and no changes are made, and as provided in the Notice and Final Report, a total of $429,798.79 will be distributed to priority and general, unsecured creditors. Priority claimants (such as wage claims and tax claims which are required to be paid 100% prior to any payment to general unsecured claims) will receive a total of $196,842.60. The remaining amount of $232,956.19 will be distributed on a pro-rata basis to general, unsecured claimants. The general, unsecured dividend is anticipated to be approximately .2 percent.

MICHAEL STEWART AND JOHN PACKARD:

In 2014, Michael Stewart (“Stewart”) and John Packard (“Packard”) were indicted on 16 counts of mail, bank and bankruptcy fraud. Prior to being indicted, Packard pleaded guilty to one count of mail fraud. Packard was sentenced to 2 ½ years and is currently serving that sentence.

Stewart proceeded to trial and was convicted of 11 counts of mail fraud in 2015. Stewart was sentenced to 14 years and is currently serving that sentence.

Notice Final Report part1 Final Report part2 Final Report part3 Final Report part4 Final Report part5 Final Report part6

Final Report part7 Final Report part8 Final Report part9

PRIOR ACTIVITY

Chapter 11 - Trustee’s Appointment

PPA Holdings, LLC and 21 related entities each filed a voluntary petition under Chapter 11 of the Bankruptcy Code on June 26, 2009 collectively, the "Debtors" or "Debtor Entities"). By Order entered on June 29, 2009, the Court authorized the joint administration of the Debtor Entities with PPA Holdings, LLC, Case No. 09-16353-ES as the lead case.

On March 11, 2010, the Debtors filed a stipulation with the U.S. Trustee directing the U.S. Trustee to appoint a Chapter 11 Trustee in the Debtor’s cases. On April 2, 2010, the Court entered an order approving the Stipulation in part and directing the appointment of a Chapter 11 trustee to ten of the original twenty-two cases.A copy of the April 2, 2010 Court Order is attached hereto.

Order 4/2/10

By Order entered April 6, 2010, Thomas H. Casey was appointed as Chapter 11 Trustee ("Trustee"). A copy of the April 6, 2010 Order is attached hereto. Mr. Casey was appointed Trustee to the following ten cases:

The Court continued the hearing on the Stipulation as to the remaining eleven Debtor Entities to June 2, 2010.

Order 4/6/10

The Court's April 2nd Order required that within 30 days of his appointment, and by May 5, 2010, the Trustee was required to submit a status report to the Bankruptcy Court, providing among other things, an analysis of the viability of a reorganization(s) of the Debtor Entities to which he had been appointed. Upon his appointment the ten Debtor Entities held title to 40 apartment buildings located in Southern California and Arizona plus the commercial property serving as the Debtors' headquarters located at 3626 Pacific Coast Highway, Long Beach, CA. To assist in the preparation of the Report as well as to assist in the administration of assets of the Debtor Entities, the Trustee retained the services of Weiland, Golden, Smiley, Wang Ekvall & Strok, LLP ("Weiland Golden") as general counsel and Hahn Fife & Company as theTrustee’s accountants ("Hahn Fife"). Orders approving the employment of Weiland Golden and Hahn Fife were entered on July 9, 2010. A copy of the July 9, 2010 Employment Orders are attached hereto. In order to assist in operating the Properties, the Trustee retained the services of Investors Property Services ("IPS"), a company specializing in the management of multiple apartment complexes. An Application to Employ IPS was filed with the Court on April 27, 2010 and an Order approving the employment of IPS was entered by the Court on June 7, 2010, a copy of which is attached hereto.

IPS Employment Order Employment Ord–Weiland Golden Employment Ord–HahnFife

In order to timely comply with the Court's April 2, 2010 Order the Trustee and his professionals immediately began to analyze information on the Properties which included but was not limited to the following information:

  1. Information regarding the current outstanding balances of all debt secured by the Properties compiled by the Debtor’s accounting staff.
  2. Information regarding the rental income and expenses of the Properties since the filing of the Chapter 11 petitions eight months earlier.
  3. Information regarding the terms of the orders authorizing the use of cash collateral and the payments made to secured lenders pursuant to those orders.
  4. The operating budgets for each Property.
  5. Chapter 11 Monthly Operating Reports filed by the Debtors.
  6. Information compiled on behalf of the Committee by Western National Group, a property management consultant, regarding the projected operating income and expenses of the Properties.
  7. Occupancy data compiled by the Debtor’s financial advisor.
  8. Data and analysis compiled by members of the Committee regarding the financial condition, operations, status of legal proceedings, and other data regarding the Properties.
  9. Relevant pleadings and other documents filed in the Chapter 11 cases.

To comply with the Court’s April 2, 2010 Order the Trustee obtained access to the accounting and property management system utilized by the Debtor’s staff. The Trustee and his professionals also conducted discussions with the principals of the Debtors, the accounting and property management staff of the Debtors, the financial advisors retained by the Debtors, Committee members and counsel, and Debtors' Counsel regarding background information, the characteristics and operations of the Properties, and other matters relevant to the Trustee’s investigation.

Based on an extensive analysis completed by the Trustee, his counsel, and accountants, on May 5, 2010, the Trustee filed his Status Report with the Court. A copy of the Trustee's May 5th Status Report is attached below. In his Report, the Trustee recommended to the Court to abandon a majority of the properties owned by the Debtor on the basis that the properties were either overencumbered or did not provide sufficient cash flow for the Trustee to continue to operate these properties.

Status Report 5/5/10

During a hearing on May 7, 2010, Debtors' counsel, the Trustee and the U.S. Trustee stipulated on the record to appoint the Trustee in the remaining eleven cases. As a result, on May 14, 2010, Thomas H. Casey was appointed as Chapter 11 Trustee to the remaining PPA cases as follows:

Order 5/12/10

ADMINISTRATION

Based on the extensive analysis and research completed by the Chapter 11 Trustee and his professionals, the Trustee determined that six of the Properties generated sufficient cash flow or had sufficient equity to operate while the Property was marketed for sale. The Trustee determined the six Properties listed below would be operated and sold and the remaining Properties abandoned.

In the Fall of 2012, the Trustee was advised of an additional property which is available for administration by the estate located at 3472 Anderson Avenue, Riverside, CA (“Anderson Property”) is attached below. The Trustee has filed a Motion to bring the Anderson Property into the estate and to operate the Property until such time as it can be sold. A copy of the Trustee’s Motion for Order (1) Granting Relief from Order Granting In Part the Chapter 11 Trustee’s Motion for order Authorizing Abandonment of Certain Real and Personal Property With Respect to 3472 Anderson Avenue; (2) Authorizing Trustee to Operate 3472 Anderson Avenue Pending Sale Pursuant to 11 U.S.C . Section 721; and (3) Authorizing the Trustee to Employ Investors’ Property Services as Property Manager for 3472 Anderson Avenue. An Order approving this Motion was entered by the Court on January 23, 2012. A copy of the Order is attached below.

Anderson.Mtn.Operate Operate.Anderson.012312

One of the assets of this estate is the Debtor’s 25% membership interest in SeaNet Santorini, LLC (“Santorini LLC”). The only significant asset of the Santorini LLC is a 55 foot yacht known as the “Santorini”. Prior to the Trustee’s appointment, Santorini LLC listed the yacht for sale. A buyer has recently presented an offer to purchase the yacht in the amount of $300,000. In January, 2012, the Trustee filed a motion to approve the sale of the estate’s membership interest. A copy of the Motion approve the sale is attached below. After brokerage commissions and unpaid charges owed by the Debtor, upon closing of the sale, the estate is expected to receive approximately $65,000 for its 25% interest in the LLC. An Order approving the sale of the estate’s membership interest was entered by the Court on January 30, 2012. A copy of the Order is attached below.

Mtn.Sale.Membership.Int.Yacht Order.Sale.Santorini.013012

Abandonment Motions

On May 11, 2010, Trustee’s counsel, on behalf of the estates, filed a Motion for Order Authorizing Abandonment of Certain Real and Personal Property ("Abandonment Motion"), requesting abandonment of the following properties:

(collectively, the "Abandoned Properties").

A hearing on the Trustee's Abandonment Motion was set for May 20, 2010. A copy of the Abandonment Motion is attached hereto. The Trustee requested abandonment of these particular properties on the basis that they were not generating sufficient cash flow to service the secured debt encumbering the properties and to pay a significant return to general unsecured creditors pursuant to a plan of reorganization.

Attached as Exhibits "7" and "8" to the Abandonment Motion is a detailed schedule demonstrating the amount of equity in each of the Debtor’s Properties as well as a schedule demonstrating the projected net cash flow for each of the Properties after debt service at various interest rates, which supports the Trustee’s request for the abandonment of these properties. An Order was entered on May 20, 2010, granting the Abandonment Motion in part, and continuing the hearing to August 6, 2010 for further evidence supporting the Trustee’s motion to abandon the following Properties:

  1. 630 Nebraska, Long Beach, CA
  2. 638 Nebraska, Long Beach, CA
  3. 761 Rose, Long Beach, CA
  4. 1365 Ohio, Long Beach, CA
  5. 1610 Cherry, Long Beach, CA
  6. 1742 Cherry, Long Beach, CA
  7. 2225-2233 Pine, Long Beach, CA
  8. 1765 Cedar, Long Beach, CA
  9. 709 Elm Street, Long Beach, CA

A copy of the May 20, 2010 Abandonment Order is attached hereto. As directed by the Court, the Trustee filed a Supplemental Brief in support of the Trustee’s Abandonment Motion which provided additional evidence in support of the Trustee's abandonment motion, including valuation reports provided by the Trustee’s real estate brokers, Marcus & Millichap, for each of the subject properties and an equity analysis providing the estimated sales price, costs of sale and debt secured by the subject properties. A copy of the Trustee’s Supplemental Brief is attached hereto. Thereafter, on August 23, 2010, the Court entered an Order authorizing the Trustee’s abandonment of the above properties. A copy of the August 23, 2010 Abandonment Order is attached hereto.

In addition to the Trustee's May 11, 2010 Abandonment Motion, the Trustee also sought to abandon the property located at 1491 Massachusetts, Riverside, CA by Motion filed on August 12, 2010. An Order approving the abandonment of 1491 Massachusetts was entered by the Court on September 23, 2010. A copy of the September 23, 2010 Abandonment Order is attached hereto.

It should be noted that the Abandonment Motion sought to abandon the real properties only and did not abandon any of the cash in the accounts of the Debtors related to the Properties. The Trustee is in the process of negotiating agreements with the secured lenders on each of the Abandoned Properties with respect to the disposition of the cash on hand related to the Abandoned Properties.

Further, as part of a Stipulation between the Chapter 11 trustee and Secured Creditor, Orion Pacific Note Investors, LLC ("Orion Stipulation"), filed on June 7, 2010, the Trustee agreed to the abandonment of the following properties based on the properties' inability to generate sufficient cash flow and the lack of equity in the properties.

  1. 65 E. Olive, Gilbert, AZ (PPA Towne Center, LLC)
  2. 1120 S. Sycamore, Mesa, AZ (Sycamore Shadows, LLC)
  3. 758 Rose, Long Beach, CA (Villa Rose Avenue Condominiums, LLC)

An Order approving the Orion Stipulation and the abandonment of the above properties was entered by the Court on June 17, 2010. A copy of the Order approving the Orion Stipulation is attached hereto.

Lastly, on October 5, 2009, prior to the Trustee's appointment, Wells Fargo Bank, the secured lender for the properties located at 151 E 1st Street, Mesa, AZ (PPA Arizona I) and 1415 N. Country Club, Mesa, AZ (PPA Arizona II) filed a Motion for Relief from the Automatic Stay so that it could enforce its rights and remedies with respect to these properties. The Motion was opposed by the Debtor and the Creditor's Committee. A preliminary hearing was held in November, 2009, and final hearings were held on January 22, 2010 and February 12, 2010. After the final hearings, the Court took the motion under advisement. Upon the appointment of the Trustee, the Court set an additional hearing for August 6, 2010, at which time the Trustee and Wells Fargo Bank stipulated to relief from the automatic stay on both properties. The Stipulated Orders were entered by the Court on August 11, 2010, copies of which are attached hereto.

Abandonment Motion–5/11/10 Abandonment Order–5/20/10 Supplemental Brief–7/16/10 Abandonment Order–8/23/10

Abandonment Order–Massachusetts–9/23/10 Orion Order–6/17/10 Stipulated Order (Az I)–8/11/10 Stipulated Order (Az II)–8/11/10

As discussed above, the Trustee has identified the properties which generate sufficient cash flow to continue operating the properties with the intent of marketing the properties for an eventual sale.

To assist in the marketing of these properties, the Trustee retained the services of real estate brokers Marcus Millichap who are experienced commercial real estate brokers. An Order approving the employment of Marcus Millichap is attached hereto. The six Properties are as follows:

Employment Order–Millichap

The status of each Property is discussed below:

3626 Pacific Coast Highway, Long Beach CA (PPA Holdings, LLC)

The Trustee commenced marketing for overbid the commercial property located at 3626 Pacific Coast Highway in Long Beach, CA ("PCH Property"). The Trustee accepted an offer to purchase the PCH Property in the amount of $1,350,000. A Motion to approve the sale of the PCH property was filed on July 22, 2010 and an Order approving the sale was entered by the Court on August 13, 2010. A copy of the August 13, 2010 Sale Order is attached.

Sale Order–08/13/10

1525 Pine Avenue, Long Beach, CA (PPA Holdings, LLC)

By Motion filed September 9, 2010, the Trustee sought authority to sell the property located at 1525 Pine Avenue, Long Beach, CA ("Pine Street Property"). The Trustee accepted an offer to purchase the Pine Street Property in the amount of $3,100,000, subject to overbid. The Pine Street Property was subject to a senior deed of trust and a junior deed of trust. Although the property was fully encumbered, the Trustee negotiated a carve out with the junior trust deed holders whereby after satisfaction of the senior deed of trust, costs of sale and certain attorneys' fees and costs related to the sale, 55% of the net proceeds will be distributed to the junior trust deed holders, and 45% will be distributed to the bankruptcy estate. An Order approving the sale of the Pine Street Property was entered by the Court on October 14, 2010. A copy of the entered Sale Orde is attached hereto.

Sale Order–10/14/10

On June 21, 2011, the Trustee filed a Motion for order approving and authorizing payment of certain expenses, approving a carve out for the estate for payment of anticipated fees and costs relating to the sale of the Pine Property, and to distribute the remaining net sale proceeds to the junior lienholders. A hearing on this Motion was scheduled for July 12, 2011.

An Amended Order approving the Motion to Distribute was entered by the Court on August 11, 2011. Checks were issued to the lienholders on August 12, 2011 pursuant to the Amended Distribution Order. A copy of the Amended Distribution Order is attached hereto.

Motion to Distribute. Pine Amended.Distribution.Order. Pine

2095 7th Street, Riverside, CA (PPA Holdings, LLC)

By Motion filed November 11, 2010, the Trustee sought authority to sell the sole single family residence owned by the Debtors and located at 2095 7th Street, Riverside, CA (“7th Street Property”). The Trustee accepted an offer to purchase the 7th Street Property in the amount of $105,000, subject to overbid. The 7th Street Property was free and clear of liens. An order approving the sale of the 7th Street Property was entered by the Court on December 13, 2010. A copy of the entered Sale Order is attached hereto.

Sale Order–12/13/10

By Motion filed September 9, 2010, the Trustee sought authority to sell the property located at 612–622 Nebraska, Long Beach, CA ("Ridgemont Property") for the amount of $1,375,000, subject to overbid. The Ridgemont Property is unencumbered. An Order approving the sale of the Ridgemont Property was entered by the Court on October 8, 2010. A copy of the Sale Order is attached hereto.

Sale Order–10/8/10

1121/1164/1170 Daisy Avenue, Long Beach, CA (Pacific Property Assets II, LLC)

By Motion filed November 9, 2010, the Trustee sought to sell the property located at 1121/1164/1170 Daisy Avenue, Long Beach, CA (“Daisy Property”) for the amount of $3,200,000. The Daisy Property was subject to a senior deed of trust and a junior deed of trust. Although the Daisy Property was fully encumbered, the Trustee negotiated a carve out with the junior trust deed holders whereby after satisfaction of the senior deed of trust, costs of sale and certain attorneys’ fees and costs related to the sale, 55% of the net proceeds will be distributed to the junior trust deed holders, and 45% will be distributed to the bankruptcy estate. An order approving the sale of the Daisy Property was entered by the Court on December 8, 2010. A copy of the entered Sale Order is attached hereto.

Daisy Sale Order–12/8/10

On June 21, 2011, the Trustee filed a Motion for order approving and authorizing payment of certain expenses, approving a carve out for the estate for payment of anticipated fees and costs relating to the sale of the Daisy Property, and to distribute the remaining net sale proceeds to the junior lienholders. A hearing on this Motion was scheduled for July 12, 2011.

An Order approving the Motion to Distribute was entered by the Court on August 4, 2011. Checks were issued to the lienholders on August 5, 2011 pursuant to the Distribution Order. A copy of the Distribution Order is attached hereto.

Motion to Distribute. Daisy Distribution.Order.Daisy

2032 and 2052 W. Linden, Riverside, CA (PPA Riverside Apartments, LLC)

By Motion filed November 9, 2010, the Trustee sought to sell the property located at 2032 and 2052 W. Linden, Riverside, CA (“Linden Properties”) for the amount of $3,750,000. The Linden Properties were subject to a senior deed of trust and a junior deed of trust. Although the Linden Properties were fully encumbered, the Trustee negotiated a carve out with the junior trust deed holders whereby after satisfaction of the senior deed of trust, costs of sale and certain attorneys’ fees and costs related to the sale,25% of the net proceeds will be distributed to the junior trust deed holders of 2032 Linden, 25% will be distributed to the junior trust deed holders of 2052 Linden, and 50% will be distributed to the bankruptcy estate. An order approving the sale of the Linden Properties was entered by the Court on December 8, 2010. A copy of the entered Sale Order is attached hereto.

Linden Sale Order–12/8/10

On June 21, 2011, the Trustee filed a Motion for order approving and authorizing payment of certain expenses, approving a carve out for the estate for payment of anticipated fees and costs relating to the sale of the Linden Property , and to distribute the remaining net sale proceeds to the junior lienholders. A hearing on this Motion was scheduled for July 12, 2011. An Order approving the Motion to Distribute was entered by the Court on August 4, 2011. Checks were issued to the lienholders on August 5, 2011 pursuant to the Distribution Order. A copy of the Distribution Order is attached hereto.

Motion to Distribute. Linden Distribution.Order.Linden

Motion for Substantive Consolidation of the Debtors’ Estates

The Trustee has recently filed a Motion requesting the Court to consolidate the Debtors’ estates. An Order approving the Trustee’s request to consolidate the Debtor’s estate was entered by the Court on September 21, 2011. A copy of the Motion for Substantive Consolidation and the September 21st Order is attached hereto.

Mtn.Consolidate.Notice of hearing Mtn.Consolidate Mtn.Consolidate.declaration–main document

Mtn.Consolidate.declaration–attachment #1 Mtn.Consolidate.declaration–attachment#2

Mtn.Consolidate.declaration–attachment #3 Mtn.Consolidate.declaration–document 4 of 6

Mtn.Consolidate.declaration–document 5 of 6 Mtn.Consolidate.declaration–document 6 of 6

OrderSubstantiveConsolidation–092111.pdf

The Trustee has also recently entered into an agreement with Morgan Lewis & Bockius, LLP which resolves their prior filed fee application and any objection Morgan Lewis may have to the Trustee’s Motion to Consolidate. An Order approving the Trustee’s agreement with Morgan Lewis & Bockius, LLP was entered by the Court on September 20, 2011.  A copy of the Motion Authorizing and Approving Settlement with Morgan Lewis & Bockius, LLP and the September 20th Order approving the Settlement is attached hereto.

Esterkin.Mtn.Comp–main document Esterkin.Mtn.Comp–exhibit part 1 Esterkin.Mtn.Comp–exhibit part 2

Esterkin.Mtn.Comp–exhibit part 3 Esterkin.Mtn.Comp–document 4 of 7 Esterkin.Mtn.Comp–document 5 of 7

Esterkin.Mtn.Comp–document 6 of 7 Esterkin.Mtn.Comp–document 7 of 7 Esterkin.Mtn.Comp.declaration

Order.Fee.Morgan.Lewis.092011.pdf

Conversion to Chapter 7 And The Trustee’s Authorization To Continue Operations During The Chapter 7 Case Pending Sales

By Motion filed August 5, 2010, the Chapter 11 Trustee requested that the Court order the conversion of each of the Debtor Entities to Chapter 7 ("Conversion Motion"). As discussed above, since his appointment, the Trustee and his professionals conducted a thorough analysis of the Debtor Entities’s operations and value of the Debtors' real property assets. The Trustee's motion for conversion was based on the evidence indicating that a) the Debtors' bankruptcy estates were suffering from a diminution in value due to the accrual of unpaid administrative expenses, which the Debtors' lacked the ability to pay; b) the Debtors did not have a reasonable likelihood of reorganization because the Debtors' properties were not generating sufficient cash flow to service the secured debt encumbering the Properties at a market rate of interest; c) the Debtors failed to file a disclosure statement or confirm a plan within the time specified by the Bankruptcy Code; and d) converting the cases to chapter 7 would minimize the legal fees.

Within the Conversion Motion, the Trustee requested authority to continue to operate the Properties being marketed for sale as discussed above. The continued operation of these marketed properties is necessary to maximize their value as a going concern and to maintain the income stream generated by the properties. A hearing on the Conversion Motion was held on September 2, 2010. By Order entered September 13, 2010, all of the Debtor’s cases were converted to Chapter 7. A copy of the Order approving the conversion is attached hereto. Upon the entering of the Conversion Order, Thomas Casey was appointed as Chapter 7 Trustee to all of the Debtors’ cases. A copy of the Chapter 7 Trustee's Notice of Appointment is attached hereto.

A hearing on the Conversion Motion was held on September 2, 2010. By Order entered September 13, 2010, all of the Debtors’ cases were converted to Chapter 7. A copy of the Order approving the conversion is attached hereto. Upon the entering of the Conversion Order, Thomas Casey was appointed as Chapter 7 Trustee to all of the Debtors’ cases. A copy of the Chapter 7 Trustee’s Notice of Appointment is attached hereto.

Conversion Order–9/13/10 Trustee's Notice of Appointment–9/17/10

The Trustee’s investigation of the Bankruptcy Estates’ potential causes of action is ongoing.

Professionals’ Fee Applications

On December 8, 2010, fee applications for three of the Chapter 11 professionals were filed with the Court and requested fees and reimbursement of costs as follows:

  1. Morgan, Lewis & Bockius, LLP as Counsel for the Official Committee of Unsecured Creditors for the period of 7/22/09 to 9/13/10 – fees in the amount of $916,882.50 and expenses in the amount of $12,260.92;
  2. PGP Valuation Inc. as Appraisers for the period of 10/27/09 to1/11/10 – fees in the amount of $110,500 and expenses in the amount of $0.00
  3. Crowe Horwath, LLP as Accountant for the Official Committee of Unsecured Creditors for the period 10/27/09 to 7/31/10 – fees in the amount of $73,114.00 and expenses in the amount of $0.00

A hearing of the above fee applications was held on January 20, 2011. The Trustee filed an Objection to each of the above fee applications.

At the fee hearing held on January 20, 2011, Judge Smith denied the fee applications as “premature” and suspended the hearing on the fee applications for the Chapter 11 professionals until such time that the Trustee notices a hearing on all fee applications, including Chapter 7 professionals. On February 16, 2011, an Order denying the fee applications was entered by the Court. A copy of the Fee Order is attached hereto.

Fee Order 2/16/11

Filing of Proofs of Claims

The Bankruptcy Court maintains a claims register that lists all proofs of claim received by the Court. A copy of the Claims Register in the PPA cases that is updated quarterly is posted below. If you filed one or more proofs of claim, you should check the Claims Register to verify that your claim has been properly entered in the Claims Register. Please be informed that, due to the large number of claims filed just before the claims bar date, the Bankruptcy Court is still entering claims in the Claims Register. Therefore, if your claim is not listed in the Claims Register, it may be because the Bankruptcy Court has not completely entered all claims filed in advance of the claims bar date.

Pacific Property Assets I Pacific Property Assets II PPA Towne Center Sycamore Shadows Villa Rose Ave. Condos Dobson Springs

PPA Arizona I PPA Arizona II Ridgemont Condos PPA Riverside Apts AAA Investment Properties Sundancer Apts

Villa Las Brisas Condos Country Club Greens PPA Vista Village Bell Cove Harbor View Condos 2130 Group Partnerships

PPA Desert View PPA Opportunity Funds PPA Equties PPA Holdings 1 PPA Holdings 2 PPA Holdings 3

PPA Holdings 4 PPA Holdings 5

Also, please be advised that upon the entering of the Order converting the Debtor’s cases from Chapter 11 to Chapter 7, the Court automatically mailed a proof of claim. If you already filed a proof of claim(s) with the Bankruptcy Court during the Chapter 11, you do not need to file your claim(s) again. Attached is a proof of claim form that you may use if you have not yet filed a claim and wish to do so.

Proof of Claim with Instructions

Pending Claims Objections

In May, 2013, the Trustee filed two Motions seeking to reclassify certain investor claims which were improperly filed as secured and/or priority claims (“Investor Reclassification Motions”). By Orders entered June 27, 2013 and June 28, 2013, the Trustee’s Investor Reclassification Motions were granted and the claims were reclassified as general unsecured claims.

In June, 2013, the Trustee filed a Motion for Approval of Omnibus Claim Objection Protocol (“Protocol Motion”) seeking to obtain relief from the Court’s normal procedures with respect to claims objections. The Trustee’s Protocol Motion, which was granted by the Court on July 15, 2013 (“Protocol Order”), allows the Trustee to object to large numbers of claims on an expedited basis.

Since the entering of the Protocol Order, the Trustee has filed a Motion to Reclassify Vendor Claims, which was granted by the Court on June 27, 2013; and five motions to reclassify certain claims which were incorrectly filed. Hearings have been scheduled for September 10, 2013 and September 12, 2013 on these pending motions. The Trustee anticipates that several more motions to reclassify claims will be filed in the immediate future.

Ordering of Section 341(a) Exam Recording

If you could not attend the Section 341(a) meeting and wish to order a copy of the recording of the 341(a) examination, it can be ordered from the Office of the United States Trustee by following the instructions on the attached form. You may access this form by clicking on (Form) below. To order a recording, you must provide the following information:

To order a recording, you must provide the following information:

  1. Debtor’s Case Name – PPA Holdings, LLC
  2. Debtor’s Case Number – 8:09–bk–16353–RK
  3. Chapter of Bankruptcy – 7
  4. Trustee’s Name – Thomas Casey
  5. Date of 341(a) Exam – 11/1/10
  6. Time of Exam – 9:00 a.m.

Please be sure to also include your contact information, including a telephone number where you can be reached.

The form can be either mailed or personally delivered to:

Office of the United States Trustee
411 W Fourth Street, Suite 9041
Santa Ana CA  92701

Please note that you MUST provide a brand new, individually sealed CD (wrapped in cellophane) along with a postage paid envelope so that Trustee’s Office can mail the CD to you. An individually wrapped CD can be purchased at most office supply stores, Walmart, or similar stores.

Order CD

FEE APPLICATIONS

A.) Fee Applications Filed by the Trustee’s Professionals.

On November 10, 2011, the Trustee, Thomas H. Casey, filed a First Interim Application for Fees and Reimbursement of Expenses. By his application, the Trustee is seeking payment of his Chapter 11 fees in the amount of $221,613.00 and Chapter 11 expenses in the amount of $2,876.66. In addition, the Trustee is seeking payment of his Chapter 7 fees in the amount of $250,555.25 and Chapter 7 costs in the amount of $7,004.77. In total, the Trustee is seeking $472,168.25 in Chapter 11 and Chapter 7 fees and $9,881.43 in Chapter 11 and Chapter 7 expenses.

Fee.App.Interim.Trustee Fee.App.Interim.Trustee.Part.1 Fee.App.Interim.Trustee.Part.2 Fee.App.Interim.Trustee.Part.3

Fee.App.Interim.Trustee.Part.4 Fee.App.Interim.Trustee.Part.5

On November 10, 2011, Trustee’s counsel, Weiland Golden Smiley Wang-Ekvall & Strok, LLP (“WG”), filed its First and Final Application for Allowance and Payment of Fees and Reimbursement of Expenses of Counsel for the Chapter 11 Trustee; and First Interim Application for Allowance and Payment of Fees and Reimbursement of Expenses of Counsel for the Chapter 7 Trustee. By its application, WG is seeking payment of its Chapter 11 fees in the amount of $427,755.00 and Chapter 11 expenses in the amount of $15,730.81. In addition, WG is seeking payment of its Chapter 7 fees in the amount of $395,153.00 and Chapter 7 costs in the amount of $35,487.96. In total, WG is seeking $822,908.00 in Chapter 11 and Chapter 7 fees and $51,218.77 in Chapter 11 and Chapter 7 expenses.

Fee.App.Interim.WG Fee.App.Interim.WG.Part.2 Fee.App.Interim.WG.Part.3 Fee.App.Interim.WG.Part.4 Fee.App.Interim.WG.Part.5

On November 9, 2011, HahnFife and Company, LLP, the accountants for the Trustee, filed its First Interim Application for fees and expenses, seeking payment of its Chapter 11 fees in the amount of $106,187.50. In addition, HahnFife is seeking payment of its Chapter 7 fees in the amount of $130,224.00 and Chapter 7 costs in the amount of $291.20. In total, HahnFife is seeking $236,411.50 in Chapter 11 and Chapter 7 fees and $291.20 in Chapter 7 expenses.

Fee.App.Interim.HahnFife

A hearing on the above fee applications was scheduled for December 1, 2011 at 10:30 a.m. in Courtroom 5A of the United States Bankruptcy Court, 411 W. Fourth Street, Santa Ana, California, 92701. An Order approving the fees of the Trustee’s professionals was entered by the Court on 12/9/11. Attached is a copy of the 12/9/11 Order. Attached hereto is the Notice of Hearing on these professionals.

Notice.to.Professionals.THC.WG.Hahn Order.Fees.Casey.Weiland.Fife.12092011.pdf

B.) Fee Applications Filed by Other Professionals

Ringstad & Sanders, LP, Debtors’ counsel (“R&S”), has filed an application for compensation whereby R&S is requesting Chapter 11 fees in the amount of $1,088,917.75, less $624,660.93 which was previously paid to R&S, leaving unpaid fees of $464,256.82 plus Chapter 11 costs of $46,295.27 for a total unpaid amount of $510,552.09. A copy of Ringstad & Sanders fee application and amended fee application are attached hereto. The Trustee has recently entered into a settlement with R&S whereby R&S has agreed to reduce their total outstanding fees from $510,552.09 to $350,000. Attached below is a copy of the Motion to Approve the settlement with R&S. An Order on the motion to approve the settlement was entered by the Court on December 1, 2011 (“Ringstad Fee Order”), a copy of which is attached below.

Fee.App.Ringstad Fee.App.Amended.Ringstad Fee.App.Amended.Ringstad.Part.1 Fee.App.Ringstad.Mtn.App.Comp

Ringstad.Sanders.Fee.Order.12/01/11

On November 14, 2011, Development Specialists, Inc., consultants (“DSI”), filed its Application for Payment of Final Fees and/or Expenses. By this application, DSI is requesting Chapter 11 fees in the amount of $317,072.00, as consultants for the Debtor during the Chapter 11 and consultants for the Trustee during the Chapter 11 in the amount of $53,047.50, for total Chapter 11 fees of $370,119.50 and Chapter 11 costs in the amount of $35,217.91. DSI is also requesting Chapter 7 fees in the amount of $7,937.00 as consultants for the Trustee and $79.05 in Chapter 7 expenses. In total, DSI is requesting $378,056.50 in fees and $35,296.96 in costs. The Trustee has recently entered into a stipulation with DSI whereby DSI has agreed to reduce their total outstanding fees to $353,193.27. Subtracting the retainer received by DSI in the amount of $112,552.52, DSI will be entitled to unpaid fees in the amount of $240,640.75. The stipulation is currently pending with the Court and has not yet been approved by the Court. A copy of DSI’s fee application and the stipulation between the Trustee and DSI are attached hereto.

Fee.App.DSI Fee.App.DSI.Stipulation

On December 8, 2010, PGP Valuation, Inc., the Debtors’ appraiser (“PGP”), filed its Final Application for Allowance of Fees and Reimbursement of Expenses of PGP Valuation, Inc. Appraisers. By this application, PGP requested Chapter 11 fees in the amount of $110,500.00. The Trustee has recently entered into a stipulation with PGP whereby PGP has agreed to reduce its outstanding fees to $66,300. The stipulation is currently pending with the Court and has not yet been approved by the Court. A copy of PGP’s fee application and the stipulation between the Trustee and PGP are attached hereto.

Fee.App.PGP Fee.App.PGP.Stipulation

On December 8, 2010, Crowe Horwath, LLP, Accountants for the Official Committee of Unsecured Creditors , filed its First Interim and Final Chapter 11 Application for Compensation and Reimbursement of Expenses for Chapter 11 fees in the amount of $73,114.00. The Trustee is currently negotiating a reduction in Crowe Horwath’s fees, however, an agreement has not yet been executed. A copy of Crowe Horwath’s fee application is attached hereto.

Fee.App.Crowe.Horwath

On November 14, 2011, Kamal Rajkanan, former chair of the former Official Committee of Unsecured Creditors, filed an application for the reimbursement of expenses in the amount of $485.75. A copy of Mr. Rajkanan’s fee application is attached hereto.

Fee.App.Kamal

A hearing on the fee applications for the above professionals was heard on December 6, 2011 in Courtroom 5A of the United States Bankruptcy Court, 411 W. Fourth Street, Santa Ana, California, 92701. Attached hereto is the Notice of Hearing on these professionals. An Order approving the fees of the above professionals was entered by the Court on 12/09/2011. Attached is a copy of the 12/09/2011 Order.

Notice.to.Professionals.Oth Order.Fees.Oth.Professionals.12/09/2011