Case 15-13441

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
__________________________________________
In re:
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)
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BUCKINGHAM OIL INTERESTS, INC.
)
)
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Debtor.
)
________________________________________ )

Chapter 11
Case No.: 15-13441 (JNF)

MOTION OF THE CHAPTER 11 TRUSTEE

TO CONDUCT RULE 2004 EXAMINATION OF JEFFREY BROWN
Charles A. Dale III, the duly appointed Chapter 11 trustee for the bankruptcy estate of the
above-captioned debtor (the Chapter 11 Trustee) respectfully request entry of an order,
pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, authorizing him to conduct
an examination of, and to compel the production of documents from Jeffrey Brown (Brown).
The proposed examination and document requests are necessary to evaluate the nature
and extent of Browns involvement with the Debtors business, as well as the true extent of the
Debtors assets and liabilities. In further support of this motion, the Chapter 11 Trustee
respectfully states as follows:
Relevant Factual and Procedural Background
A. Procedural Background
1.

On September 1, 2015 (the Petition Date), Buckingham Oil Interests, Inc. (the

Debtor) filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (the
Chapter 11 Case) in this Court.

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2.

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On the Petition Date, the United States Trustee (the U.S. Trustee) moved, with

the assent of the Debtor, for an order directing the appointment of a Chapter 11 trustee. [Docket
No. 2].
3.

On September 1, 2015, the Court entered an order authorizing the United States

Trustee to appoint a Chapter 11 trustee to conduct the Debtors business. [Docket No. 4].
4.

On September 1, 2015, the U.S. Trustee filed the Application for and Certificate

of Appointment of Chapter 11 Trustee, requesting the Courts approval of the appointment of

Charles A. Dale III as Chapter 11 Trustee (the Certificate of Appointment). [Docket No. 5].
5.

On September 15, 2015, the Court entered an order approving the appointment of

the Chapter 11 Trustee. [Docket No. 19].

B. The Debtors Business
6.

The Debtor is in the business of oil and gas exploration and production. The

Debtor was incorporated in Texas, but its headquarters are located in Falmouth, Massachusetts.
Since at least 2005, the Debtor has acquired a fairly extensive portfolio of working interests in
approximately 100 tracts of land or prospects in eleven (11) different states, including Texas
and Louisiana. Within each prospect, the Debtors operating partners (referred to as operators)
may drill several wells in an effort to discover oil or gas that can be produced in commercial
quantities. Although the Chapter 11 Trustee has not yet concluded his review of the Debtors oil
and gas assets, it appears that the Debtor currently owns a working interest in as many as 300
individual wells.
7.

As the Court is aware, the Debtors bankruptcy filing was precipitated by the

death of the companys founder, Darryl Buckingham. Because Darryl Buckingham conducted
most of the Debtors business affairs personally, very few people have any such knowledge. The
Chapter 11 Trustee has worked closely with the Debtors remaining employees to understand the

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nature and extent of Buckinghams operations and has had numerous discussions with parties
that invested (directly or indirectly) in the Debtors oil and gas prospects pre-petition.
8.

Based on this initial investigation, the Chapter 11 Trustee believes that Brown

participated in the Debtors business and may have received one or more transfers as a result.
Relief Requested
9.

The Chapter 11 Trustee seeks an order, pursuant to Federal Rule of Bankruptcy

Procedure 2004, authorizing him to conduct an examination of, and to compel the production of
documents from, Brown.
Basis for Relief
10.

Rule 2004 of the Federal Rules of Bankruptcy Procedure provides that upon

motion of any party-in-interest, the Court may order the examination of any entity. Fed. R.
Bankr. P. 2004(a). Such an examination may relate to the acts, conduct, or property or to the
liabilities and financial condition of the debtor, or to any matter which may affect the
administration of the debtors estate.... Fed. R. Bankr. P. 2004(b). Moreover, the scope of such
an examination is quite broad, as it is not limited by the restrictions of Rule 16 of the Federal
Rules of Civil Procedure, and may thus be used for, among other purposes, discovering assets
and unearthing frauds. In re Duratech Indus., Inc., 241 B.R. 283, 289 (E.D.N.Y. 1999) (quoting
In re GHR Energy Corp., 33 B.R. 451, 454 (Bankr. D. Mass. 1983)); accord In re Table Talk,
Inc., 51 B.R. 143, 145 (Bankr. D. Mass. 1985). Courts have long analogized the depth and
breadth of such an examination to a fishing expedition. In re North Plaza, LLC, 395 B.R. 113,
122 (S.D. Cal. 2008); In re French, 145 B.R. 991, 992 (Bankr. D.S.D. 1992).
11.

The Chapter 11 Trustee believes that Brown participated in the Debtors business

and may have received one or more transfers as a result. For this reason, the proposed

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examination and document requests are necessary to evaluate the nature and extent of Browns
involvement.
Notice
12.

Notice of this Motion has been given to (i) the Office of the United States Trustee

for the District of Massachusetts; (ii) counsel for the Debtor; (iii) counsel to First Financial Bank,
N.A.; (iv) Jeffrey Brown; and (v) any other parties requesting notice. The Chapter 11 Trustee
submits that, given the nature of the relief requested, no other or further notice of the relief
requested is necessary.
No Prior Request
13.
Court.

No previous request for the relief sought herein has been made to this or any other

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WHEREFORE, the Chapter 11 Trustee respectfully requests that this Court enter an Order:
(a) authorizing the Chapter 11 Trustee to conduct an
examination of Brown pursuant to Federal Rule of Bankruptcy
Procedure 2004;
(b) directing Brown to produce those documents which are
responsive to the subpoena to be served by the Trustee
following allowance of this Motion, and to attend an oral
examination to be conducted by the Chapter 11 Trustee upon
five (5) business days notice; and
(c) granting to the Chapter 11 Trustee such other and further
relief as this Court deems just and proper under the
circumstances.
Dated: September 28, 2015
Respectfully submitted,
CHARLES A. DALE III,
CHAPTER 11 TRUSTEE
By his counsel,
/s/ Mackenzie L. Shea
Mackenzie L. Shea (BBO No. 666241)
David A. Mawhinney (BBO No. 681737)
K&L Gates LLP
State Street Financial Center
One Lincoln Street
Boston, Massachusetts 02111
Tel: (617) 261-3100
Fax: (617) 261-3175
E-mail:
mackenzie.shea@klgates.com
david.mawhinney@klgates.com
Counsel to the Chapter 11 Trustee