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Date of Issue: January 18, 2007

Developers not yet 'out of time'

Bankrupt GSR Development LLC is apparently out of time to file its disclosure statement and reorganization plan with the federal bankruptcy court in Tampa.

Then again, the company wants more time to keep from being out of time.

When GSR filed its bankruptcy papers on July 13, 2006, Judge K. Robert May gave the company until Nov. 13 to come up with a reorganization plan and file a full financial disclosure statement.

But the company failed to make that deadline, instead asking and receiving an extension until Jan. 9.

Even the extra two months appeared to be too much of a burden for the financially strapped company and its principals, Robert Byrne and Steve Noriega.

On Jan. 8, just one day before the deadline, attorney Richard Prosser, representing GSR, filed a "second extension" of the time period during which only GSR can file a disclosure statement and reorganization plan. GSR now asks for an extension of the "exclusivity period" to Feb. 28, nearly eight months after the original bankruptcy papers were filed.

If granted by May, it would allow GSR to retain the "exclusive" right to file a reorganization plan and disclosure statement, effectively preventing the company’s numerous creditors from banding together to file their own reorganization plan.

Prosser claimed that GSR’s chief restructuring manager, William Maloney, "requires additional time to finalize his marketing plan" to sell GSR’s Anna Maria Island assets.

When the company filed for bankruptcy, it listed $44 million in assets compared with just $33 million in liabilities.

During the initial bankruptcy hearing, however, federal bankruptcy court trustee Theresa Boatner had questioned GSR on the whereabouts of approximately $4 million that she could not account for, but Byrne and Noriega assured Boatner that the location of all funds and assets would be established in the financial disclosure statement, which at that time was due in November.

Prosser also said in his motion that GSR "prefers to circulate a draft of its disclosure statement and plan or reorganization" to the creditor’s committee prior to filing the document with the court.

He also claimed the motion was "not submitted for purposes of delay and will not prejudice any party."

But the motion is likely to draw the ire of the creditor’s committee, which has been lobbying for all GSR assets to be put up for auction to the highest bidder.

Prosser also asked the court to set Feb. 20 as the "bar date" for claims against GSR. If approved, no claims against GSR would be accepted after that day.

Judge May scheduled a hearing on both motions for 9:30 a.m. Thursday, Jan. 25, at the federal courthouse in Tampa at 801 N. Florida Ave.