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Date of Issue: January 03, 2008

... and court to hear motion to dismiss GSR proceeding

Unsecured investors in the failed GSR Development LLC bankruptcy proceedings may yet have their day in court.

U.S. Federal Bankrupcty Court Judge K. Rodney May has scheduled a preliminary hearing Jan. 30 to consider a motion by attorney Cheryl Thompson, representing the unsecured creditors committee, to “approve compromise of controversy” of the adversarial proceedings brought against some of the “targets” in the bankruptcy. Thompson had earlier suggested to May that the adversarial proceedings against certain “targets” need not take place as scheduled because a compromise has been reached.

The “targets” include GSR principals Robert Byrne and Steve Noriega. Originally, Thompson had asked for $30 million in the adversarial proceedings against the targets. The amount of the “compromise” settlement was not mentioned in the court documents.

After Thompson in early December informed the court that a compromise had been reached, she said details of that agreement would be filed with the court. As of Dec. 28, however, no particulars of the compromise were public.

Efforts by The Islander to reach Thompson for comment were unsuccessful.

Unsecured creditors Kent Davis, Mel and Carol Yudofsky and Patricia Hart have retained their own attorney to view documents filed in the case, and have brought a motion asking that Byrne be placed into involuntary bankruptcy by the court (see separate story).

The preliminary hearing on Thompson’s motion is scheduled for 2 p.m. Wednesday, Jan. 30, at the federal courthouse in Tampa at 801 N. Florida Ave.