IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

IN THE MATTER OF: ) IN CHAPTER 7 

) 

 PACKAGING ADVANTAGE, INC., ) 16-24295

 ) 

 Debtor(s). ) 

N O T I C E 

TO: Office of the United States Trustee – Service through CM/ECF 

Mr. Robert Rotman– Service through CM/ECF 

 

 PLEASE TAKE NOTICE that on the 19th day of January, 2018 at the hour of 

11:00 a.m. or as soon thereafter as counsel may be heard, I shall appear before the 

Honorable JANET S. BAER, Bankruptcy Judge, at the Kane County Courthouse, 100 

South Third Street, Courtroom No. 240, Geneva, Illinois, or before such other Judge as 

may be sitting in her place and stead, and then and there present the attached 

Application, at which time and place you may appear, if you so see fit. 

/s/GINA B. KROL 

GINA B. KROL 

105 W. Madison St., Suite 1100 

Chicago, IL 60602 

312/368-0300 

STATE OF ILLINOIS ) 

 ) SS 

COUNTY OF COOK ) 

GINA B. KROL, being first duly sworn on oath, deposes and states that she served a 

copy of the foregoing Notice together with a copy of the Application attached hereto on 

the persons shown above, via CM/ECF System and/or US Mail, this 11th day of 

December, 2017. 

/s/ GINA B. KROL 

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IN THE UNITED STATES BANKRUPTCY COURT 

 FOR THE NORTHERN DISTRICT OF ILLINOIS 

 EASTERN DIVISION 

IN THE MATTER OF: ) IN CHAPTER 7 

) 

PACKAGING ADVANTAGE, INC., ) No. 16-24295

) 

 Debtor(s). ) 

TRUSTEE’S APPLICATION TO ACCEPT SETTLEMENT AND COMPROMISE AND 

TO SELL ASSETS 

TO THE HONORABLE JANET S. BAER

 BANKRUPTCY JUDGE 

Now comes GINA B. KROL, Trustee herein, and respectfully represents unto this 

Honorable Court as follows: 

1. She is the duly appointed, qualified and acting Chapter 7 Trustee in the 

above-entitled proceeding. 

2. The Trustee has reviewed the books and records of the Debtor and has 

discovered that the Debtor had made a payment to Source One, a creditor herein, in the 

amount of $40,838.14 within the 90 days immediately preceding the Chapter 7 filing. 

3. The Trustee has determined that this payment constitutes a preferential 

transfer within the meaning of 11 U.S. C. §547 and has made demand on Source One for 

the return of said funds. Source One has disputed the Trustee’s determination that the 

payment qualifies as a preferential transfer. 

4. That given the costs to litigate the avoidance of the alleged preferential 

transfer and the risk of losing at trial, the Trustee has agreed to reduce her demand for 

turnover by 25% and accept the sum of $30,628.61 to fully and finally settle the potential 

preference litigation. 

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 5. Prior to the filing the Debtor and Source One were engaged in litigation. In 

that litigation, Source One alleged that the Debtor’s principals, Dorothy Curtis and Nancy 

Rasmussen breached their fiduciary duties and made unlawful distributions to themselves 

and or insiders. 

 6. Source One has urged the Trustee to take on that litigation in an effort to 

recover additional funds for the creditors of this Estate. The Trustee does not believe it’s 

in the best interests of the Estate to expend Estate funds to pursue this litigation. 

 7. The Trustee has negotiated a sale of that cause of action with Source One 

where it would pay the Estate the sum of $10,000.00 to purchase all of the Estate’s 

interest in that cause of action. 

 8. The Trustee believes that the sale of this litigation to Source One results in a 

benefit to the Estate without the risk of expense or loss and that acceptance of this offer 

is in the best interests of creditors herein. 

 9. The Trustee recommends the acceptance of the $10,000.00 from Source 

One. The Trustee makes no representations or warranties of any kind with respect to 

value or validity of these claims. 

 10. If approved the settlement and sale will result in a meaningful dividend to 

creditors of this Estate. 

WHEREFORE, GINA B. KROL, Trustee herein, prays for the entry of an Order 

authorizing the Trustee to compromise the potential avoidance of a preferential transfer 

made by the Debtor to Source One for the sum of $30,628.61; sell the Debtor’s right, title 

and interest in litigation against Dorothy Curtis and Nancy Rasmussen for breach of 

fiduciary duties and improper distributions to Source One for the sum of $10,000.00 , 

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without representations or warranties of any kind as to value or validity of these claims; 

and for such other and further relief as the Court shall deem proper. 

 GINA B. KROL, Trustee 

GINA B. KROL 

COHEN & KROL 

105 W. Madison St., Suite 1100 BY: /s/ Gina B. Krol 

Chicago, IL 60602 One of Attorneys for Trustee 

312/368-0300 

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