Miles Guo Files 2nd Objection to Motion for Chapter 11 Case to Bankruptcy Court

On July 29th, Miles Guo’s legal counsel team filed the 2nd Objection to the United States Bankruptcy Court, District of Connecticut.

Miles’ counsel believes that by the Motion, Luc A. Despins, the appointed trustee granted by the Court on July 8th, seeks extremely broad relief; but fails to state the authority that entitles him to the relief sought.

Despins sought to hold all of Miles’ economic and governance rights, for the benefit of the estate, with respect to all Miles Guo-Controlled Entities, including, without limitation, Genever (BVI). The foregoing rights include his authority to replace any existing officer, director, manager, or a similar person of the Miles Guo-Controlled Entities. As part of the foregoing, to the extent necessary, Despins is authorized to act, in his capacity as the chapter 11 trustee in this Chapter 11 Case, as any such officer, director, manager, or similar person who has been removed.

Miles’ counsel argued that the above order is not a correct statement of the law and there is no legal authority, statutory or judicial, for this Court to enter Despins proposed order; other than Genever Holding Corporation (BVI) (“Genever BVI”), the identities of the so-called “Miles Guo-Controlled Entities” that Despins is seeking relief with respect to are not specified in the Motion; Despins didn’t identify the specific Miles Guo-Controlled Entities; Despins also seeks to be granted such unrestricted corporate authority with respect to entities that have not been put on notice and have not been granted a full and fair opportunity to be heard; Despins makes no reference to the applicable law of the British Virgin Islands or the organization documents of Genever(BVI) to support the governance rights he seeks.

Moreover, to Despins’ statement that Miles owns all of the equity in Genever (BVI), Miles’ legal counsel stressed that Miles’ son owns the equity of the Apartment Owner. On or about the Trust Date, the Apartment Owner funded Genever Holdings LLC with the purchase price for the Apartment. These funds came from entities owned or controlled by Miles’ son and not from Miles. The Genever Holdings LLC commenced its own chapter 11 case before the United States Bankruptcy Court for the Southern District of New York on October 12, 2020.

Despins sought the order from the Court to request the assistance of the foreign courts, including the assistance of the BVI courts regarding any of his requests for relief with respect to his exercise of corporate control over Genever (BVI). Miles’ counsel stated that this provision appears to be very open-ended and indefinite, and it appears to grant Despins the imprimatur of the Court with respect to “any of Despins’ request of the for relief” that he might make to a foreign court, even if the Court has no knowledge of any such request.

Thus, Miles’ legal counsel team respectfully requests that the Court deny the Motion consistent with this response and grant Miles such other and further relief as justice requires.