Judge Manning Denounced the Motion to Change the Asset Trustee

According to Miles Guo’s news on July 12th, Judge Manning of the Connecticut District Bankruptcy court severely reprimanded the previous motion of the Pacific Alliance Asian Opportunity Fund (PAX) to change the trustee of assets, pointing out that the motion violated relevant U.S. law in many places. It is foreseeable that PAX may pay the price for its behavior.

In response to PAX’s previous motion, Connecticut Bankruptcy Court Justice Manning reprimanded the court on the 11th, stating if a new trustee is to be elected, PAX must prove that an election process was conducted and the results communicated to the court. But nowhere in the file provided by PAX does it appear that the election of Luc A. Despins as replacement trustee was held.

Judge Manning noted that under U.S. law, if there were any problems with the previously appointed trustee, it needs to be disclosed to the court. After that there is the question of whether the former trustee resigned voluntarily, or whether the former trustee has passed away. Under these circumstances, a further court order must be obtained to qualify for a change of trustee.

Judge Manning said that PAX made no sense in the entire legal process of replacing the trustee of assets. It is puzzling that PAX and the U.S. Trustee’s Office made the decision to remove the trustee in this case without any explanation or clarification after the Court has appointed the original asset trustee with assigned affidavit stating disinterest and conflict free.