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Date of Issue: November 23, 2006

GSR avoids financial disclosure, reorganization deadline

Bankrupt GSR Development LLC avoided disclosing its full financial affairs and providing a reorganization plan to the U.S. Federal Bankruptcy Court in Tampa Nov. 13 by filing a motion on Nov. 10 to extend the deadline.

Just by filing the motion of GSR attorney Richard Prosser, GSR was relieved of the original deadline. Prosser also asked the court to continue to give GSR the exclusive right to file a reorganization plan. GSR wants the deadline to file its financial disclosure and reorganization plan extended until Jan. 9, 2007.

Bankruptcy Judge K. Rodney May set the preliminary hearing for 10 a.m., Dec. 7, 2006, at the U.S. bankruptcy court at 801 N. Florida Ave. in Tampa, but ruled that the court could grant either a full or partial summary judgment in favor of GSR at the preliminary hearing.


Lawyers question GSR activities

Several unsecured creditors of GSR say they've been called by attorneys for the Florida State Attorney's Office and the U.S. Department of Justice to discuss their relationship with GSR.

One creditor, who asked not to be identified, said the investigators just wanted to hear details of several real estate and financial transactions.

"They were very matter-of-fact. They didn't indicate one way or the other why they wanted the information," said the creditor.

The total amount of unsecured claims against GSR is near $6 million and an unsecured creditors committee has been formed to protect the interests of those creditors.

Efforts to confirm any investigation by either the U.S. Department of Justice or the State's Attorneys office were unsuccessful.