UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

__________________________________ 

 ) 

In re: ) CASE NO. 19-22057-RAM

 ) CHAPTER 7

PACIFICO SUR GROUP, LLC, )

 ) (Jointly Administered)

Debtor. )

 )

ORDER (1) DENYING 

MOTION FOR RECONSIDERATION; AND

(2) IMPOSING FILING REQUIREMENTS AND 

EXAMINATION OBLIGATIONS ON FRANCISCO BAEZA

The Court conducted a hearing on August 17, 2020, on the 

following motions:

A. Chapter 7 Trustee’s Motion for Order to Show Cause Why 

Francisco Baeza and Agustin Palma, Jointly and

Severally, Should Not be Held in Contempt of Court for 

Failure to Comply with this Court’s Order (the “Show 

Cause Motion”) [DE# 206];

Robert A. Mark, Judge

United States Bankruptcy Court

_____________________________________________________________________________

ORDERED in the Southern District of Florida on August 18, 2020.

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B. Francisco Baeza’s Motion for Rehearing, Reconsideration, 

to Alter and Amend, and for Additional Relief from the 

Court’s Order Denying Motion to Quash (the “Motion for 

Reconsideration”) [DE# 215]; and

C. Chapter 7 Trustee’s Expedited Motion to Compel Francisco 

Baeza and Agustin Palma to Appear at First Meeting of 

Creditors (the “341 Motion”) [DE# 235].

The Motion for Reconsideration asks the Court to reconsider 

its June 11, 2020 Order Denying Motion to Quash [DE# 205]. The 

Show Cause Motion seeks enforcement of the Court’s April 6, 2020 

Order Granting Extension of Time to File Lists and Schedules (the 

“Extension Order”) [DE# 162], and the 341 Motion seeks an Order 

compelling Francisco Baeza (“Baeza”) and Agustin Palma (“Palma”) 

to appear at the Debtors’ 341 Meeting on August 26, 2020.

 At the conclusion of the August 17th hearing, the Court 

announced its findings and conclusions on the record. Key findings 

included the following:

A. The Motion for Reconsideration failed to establish that 

the Order Denying Motion to Quash was based on any manifest errors 

of fact or law. Therefore, there was no cause to grant 

reconsideration of that Order.

B. In further support of the Order Denying Motion to Quash, 

and in support of the Court’s finding that Baeza must attend the 

341 meeting and comply with the Extension Order, the Court cited

the following additional authority: (1) a debtor’s obligations

under 11 U.S.C. § 521, including the obligation to file schedules

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and a statement of financial affairs, (2) a debtor’s obligation 

under 11 U.S.C. § 343 “to appear and submit to examination under 

oath at the meeting of creditors under section 341(a)”, (3) the 

duties of a debtor under Fed. R. Bankr. P. 4002, including a 

debtor’s obligation under (a)(1) of that rule to “attend and submit 

to an examination at the times ordered by the court”, and (4) the 

definition of a debtor in Fed. R. Bankr. P. 9001(5) that includes 

officers and controlling shareholders.

C. Baeza concedes that he owns and controls the Debtors. 

Therefore, he must fulfill the obligations of the Debtors under 

the statutory and rule provisions cited in subparagraph B. above.

 Based upon these findings, and the additional findings stated 

on the record, which are incorporated here by reference, it isORDERED as follows:

1. The Motion for Reconsideration is denied.

2. Unless otherwise agreed to by the Petitioning Creditors

and the Chapter 7 Trustee (the “Trustee”), Baeza shall appear for 

a video conference examination no later than September 15, 2020. 

3. By September 8, 2020, Baeza shall file all of the lists, 

schedules and other documents required by this Court’s February 

20, 2020 Order for Relief in Involuntary Case and Order Setting 

Deadline for Filing Schedules, Statements and Other Documents [DE# 

126]. That Order imposed these obligations on Debtors’ prior 

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attorney, Miguel Armenteros. However, the April 6, 2020 Extension 

Order subject of the Show Cause Motion requires Baeza and Palma to 

prepare and file the required documents.

4. If Baeza claims that he does not have access to the 

information necessary to comply with the Extension Order, he shall 

file an affidavit or declaration by September 8, 2020 describing 

the efforts he has made to comply and describing the location of 

the information necessary to comply.

5. As announced at the August 17th hearing, Palma is excused 

from complying with the Extension Order.

6. The 341 Motion is granted as to Baeza and denied as to 

Palma. Palma is excused from appearing at the § 341 Meeting. 

Baeza is obligated to appear at the Debtors’ § 341 Meeting. The 

Trustee shall continue the § 341 Meeting presently scheduled for 

August 26, 2020 and conduct the § 341 Meeting together with the 

video conference examination required by paragraph 2 of this Order.

7. By September 1, 2020, Baeza’s counsel, Laudy Luna, Esq.,

shall file a Notice of Compliance stating whether Baeza intends to 

comply with this Order.

8. Baeza’s failure to comply with this Order shall be deemed 

civil contempt, and the Trustee and/or the Petitioning Creditors 

may seek any sanctions available for contempt, including those 

provided in Fed. R. Bankr. P. 2005.

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###

COPIES TO:

Barry S. Turner, Esq.

Laudy Luna, Esq.

Gary M. Freedman, Esq.

AUST

(Attorney Turner is directed to serve a copy of this Order on all 

other necessary parties and file a Certificate of Service)

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