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IN RE NACIO SYSTEMS, INC.

No. 08-10078.

In re NACIO SYSTEMS, INC., Debtor(s).

United States Bankruptcy Court, N.D. California.

March 11, 2013.

Memorandum After Sua Sponte Reconsideration

ALAN JAROSLOVSKY, Bankruptcy Judge.

The only assets left in this failed Chapter 11 case, now converted to Chapter 7, are about $377,000.00 which are the proceeds from the recovery and liquidation of two generators by Chapter 7 Trustee Jeffry Locke. Creditor Nacio Investment Group, LLC ("NIG") claims a security interest in these proceeds. Locke and NIG reached a compromise whereby NIG would be paid $210,000.00 in...

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