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U.S. Bankruptcy Judge Thomas Perkins had also told attorneys at a hearing earlier this month that it was unlikely that he would approve the appointment of a trustee because management was already in place in the form of a chief restructuring officer who was installed on an interim basis last month. Under the agreement with the city, the chief restructuring officer must retain 100 percent of the control of the debtor companies and is prohibited from making from making any payments to the owners of the debtor companies. The city has alleged the hotels' owners, Gary Matthews and Monte Brannan, are incompetent and fraudulent, and have siphoned off $1.6 million for themselves in violation of a side agreement with the city. The city wanted — and got — assurance that neither man would have any check-writing ability while the bankruptcy is pending. Matthews and Brannan agreed to the quick sale of the hotels and the neighboring parking deck. After the sale of the hotels, a trustee would then be appointed to oversee the rest of the bankruptcy proceedings. The next bankruptcy hearing involving the disposition of the hotels is scheduled at 2 p.m. Friday at the U.S.

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