Brooke former director, officer seeks to replace Chapter 11 trustee

By Caroline Salls

Pittsburgh, Jan. 22 – Brooke Corp. Chapter 11 trustee Christopher J. Redmond said former Brooke director and officer and current shareholder Robert Orr has asked the U.S. Bankruptcy Court for the District of Kansas to replace him as trustee, according to documents filed with the court on Thursday.

Redmond said Orr’s motion alleges that the trustee should be replaced because Orr has claims for damages allegedly done to the Brooke bankruptcy estates by Husch Blackwell, LLP, the firm in which the trustee is a partner and which also represents the estates.

Orr argued that the existence of these claims “constitutes a lack of disinterestedness sufficient to constitute cause to disqualify Mr. Redmond.”

Redmond has asked the court to enter a summary judgment denying the replacement request, arguing that Orr waived his rights to list the claims in question and object to the acts of the trustee.

“Orr freely admits that he was aware that he could assert his claims at the time his bankruptcy was filed,” Redmond said.

“His failure to list them was a deliberate choice, just like his choice to wait seven years to file the [trustee replacement motion].”

Based in Overland Park, Kan., Brooke is a holding company for insurance and banking services distribution companies. The company filed for bankruptcy on Oct. 28, 2008, and its Chapter 11 case number is 08-22786.

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