IN RE KOBRA PROPERTIES

Nos. 08-37271, 08-38105, 08-37272, 08-37273.

406 B.R. 396 (2009)

In re KOBRA PROPERTIES, a California General Partnership, Kobra Preserve, LLC, Vernon Street Associates, LLC, Rocky Ridge Center, LLC, Debtor(s).

United States Bankruptcy Court, E.D. California.

June 1, 2009.


Attorney(s) appearing for the Case

Donald W. Fitzgerald, Felderstein Fitzgerald Willoughby & Pascuzzi LLP, Sacramento, CA, prospective attorneys for chapter 11 trustee, Steven L. Victor.

Judith C. Hotze, United States Department of Justice, Sacramento, CA, for Acting United States Trustee, Region 17, Sara L. Kistler.

Donna T. Parkinson, Parkinson Phinney, Sacramento, CA, prospective attorneys for the Official Committee of Unsecured Creditors.

Susan S. Davis, Cox, Castle & Nicholson LLP, Los Angeles, CA, for Dexia Real Estate Capital Markets.

Michele Sabo Assayag, Assayag & Mauss, Costa Mesa, CA, for Union Bank of California, N.A.

Ronald H. Sargis, Hefner, Stark & Marois LLP, Sacramento, CA, for Exchange Bank.

Mary Olden, McDonough, Holland & Allen PC, Sacramento, CA, for KeyBank National.

Peter L. Duncan, Pyle Sims Duncan & Stevenson APC, San Diego, CA, for Jack in the Box.

Hayne R. Moyer, Kronick, Moskovitz, Tiedemann & Girard, Sacramento, CA, for Umpqua Bank.

Lisa Lenherr, Law Offices of James A. Tiemstra, Oakland, CA, for Bank of the West.

Brian A. Bobb, Jeffer, Mangels, Butler & Marmaro LLP, San Francisco, CA, for Mechanics Bank.

R. Dale Ginter, Downey Brand LLP, Sacramento, CA, for general partners of Kobra Properties, Abolghassem Alizadeh and Kobra Alizadeh.

William D. Schuster, Allie & Schuster, P.C., Santa Ana, CA, for HD Supply Construction Supply, Ltd., a limited partnership dba HD Supply White Cap Construction Supply formerly White Cap Construction Supply, Inc.

Vincent J. Novak, Morrison & Foerster, San Francisco, CA, for Sterling Savings Bank.

Martha E. Romero, Romero Law Firm, Whittier, CA, for County of Placer, California, a California taxing authority.

Gerald P. Kennedy, Procopio, Cory, Hargeaves & Savitch, San Diego, CA, for Key Real Estate Group.

Scott Olson, Sedgwick Detert, San Francisco, CA, for First Horizon Home Loan Corporation.


OPINION

KLEIN, Bankruptcy Judge.

The question is whether 11 U.S.C. § 327(a) allows a law firm to switch clients so as to represent a newly-appointed chapter 11 trustee after having represented the official committee of unsecured creditors. A diligent month-long search by the trustee for counsel has been fruitless. The exigencies of this complex operating real estate situation imperil the estates if the trustee remains stymied by lack of counsel.

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