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Though Gitto/Global Corp. is just about dissolved, its story is far from over. On Wednesday, Judge Joel B. Rosenthal in the U.S. Bankruptcy Court for the District of Massachusetts in Worcester heard numerous motions on whether to seal, black out names or release a 170-page report from examiner Charles L. Glerum detailing allegations of financial misconduct by top executives. Among the offenses cited at the Lunenburg, Mass.-based compound maker were check-kiting, keeping two sets of books and overstating revenue. The Boston Herald has called it “a case likened by some to a mini-Enron scandal.” Gitto/Global chairman Charles Gitto and his son, Gary, resigned in September as chairman and CEO, respectively. President Frank Miller bowed out at the same time. In late December, Toner Plastics Inc., an Agawam, Mass., producer of plastics and crafts for the toy industry, purchased the remaining assets of Gitto/Global for $8.9 million. Attorneys for former high-ranking executives and media organizations are battling over the release of the examiner’s report. In January, Rosenthal essentially said that people mentioned in the report could read the portions of it that pertain to them. They could later petition the court to seal that portion if they had a problem with it, he said. Newspapers including the Worcester Telegram & Gazette and the Fitchburg Sentinel & Enterprise have pushed for the report’s full release. “There is no sound basis for allowing some interested parties to gain access to these materials while simultaneously denying other interested parties the same access,” attorney Peter J. Caruso wrote in a court filing. Caruso, of Andover, Mass., law firm Caruso & Caruso, represents MediaNews Group Inc., publisher of the Sentinel & Enterprise. “There is no known participant who will be placed in jeopardy; since this is a final report, there will be no chilling of informants; and given the debtors’ self-placed position, even they have not articulated any substantiated privacy claims.” Boston law firm Cunha & Holcomb, representing a client named in the report, petitioned to seal or redact portions of the report. “Redaction is appropriate to avoid serious harm and risk to the client and his business,” attorney Janet E. Bostwick wrote on behalf of the client. “The client will be ‘tried’ in the court of public opinion based on bare allegations, long before all of the facts and circumstances are known. The client believes that such negative publicity will significantly adversely affect the client’s business, his business relationship and his employment,” she said. Buried amid the debate over Glerum’s report is a motion by the trustee in the case to convert the case to Chapter 7 liquidation, pushing Gitto/Global one step closer to its end. Given the multitude of motions about the examiner’s report, the Chapter 7 matter may be postponed. “The debtor’s assets have been sold,” said a motion on behalf of Trustee Lisa D. Tingue. “The debtor is unable to conduct ongoing business and has no reasonable likelihood of rehabilitation. The debtor is therefore unable to effectuate a plan.” Gitto Global filed for Chapter 11 protection last Sept. 24. Copyright �2005 TDD, LLC. All rights reserved.

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