Trustee: Nellson Debtors "Dishonest and Incompetent"

Law360, New York (October 11, 2006, 12:00 AM EDT) -- The U.S. Trustee overseeing Nellson Nutraceutical Inc.’s Chapter 11 proceedings has filed a motion blasting the debtors as “dishonest and incompetent” and asking the court to appoint a Chapter 11 trustee.

U.S. Trustee Kelly Beaudin Stapleton filed the motion Tuesday in federal bankruptcy court in Delaware.

The motion argues a Chapter 11 trustee should be appointed for a litany of reasons, and accuses the debtors of threatening members of the unsecured creditors committee.

The U.S. Trustee said she had been advised that debtor’s management told the...
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