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§ 1104

In re Residential Capital LLC

Ruling
Examiner appointed in complex chapter 11 case of debtor that operated loan servicer.
Procedural posture

Moving creditor sought the appointment of an examiner, pursuant to 11 U.S.C.S. § 1104(c), to investigate and report on the actions of the affiliated debtors including, without limitation, the debtors' pre-petition transactions with a non-debtor entity.

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Commercial opinion summary, case decided on June 20, 2012 , LexisNexis #0712-062

In re Smith

Ruling
Past fraudulent conduct was not grounds for appointment of chapter 11 trustee.
Procedural posture

A bankruptcy administrator (BA) filed a motion for appointment of a chapter 11 trustee on the grounds that the pre-petition fraudulent conduct to which the male debtor pled guilty during the bankruptcy case constitute cause under 11 U.S.C.S. § 1104(a)(1). The debtor opposed the motion, as did a creditor that provided post-petition financing to the debtors.

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Consumer opinion summary, case decided on May 21, 2012 , LexisNexis #0612-058

Citizens Corp. v. Tennessee Commerce Bank (In re Citizens Corp.)

Ruling
Chapter 11 trustee appointed due to principal's withdrawal of funds from key subsidiary of debtor.
Procedural posture

Chapter 11 debtor filed an expedited motion for contempt and sanctions for violation of the automatic stay and an expedited motion for a preliminary injunction. Defendant lead lender filed a motion pursuant to 11 U.S.C.S. § 1104(a) for appointment of a chapter 11 trustee.

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Commercial opinion summary, case decided on February 27, 2012 , LexisNexis #0312-097

In re Michigan BioDiesel LLC

Ruling
Chapter 11 examiner appointed to make sure debtor had not engaged in tax fraud.
Procedural posture

The court entered an Order to Show Cause on September 27, 2011 because it doubted the propriety of substantial excise tax refunds that the chapter 11 debtor and a non-debtor were claiming from the United States Treasury. The Show Cause Order directed debtor to explain why the court should not appoint a Chapter 11 trustee or examiner under 11 U.S.C.S. § 1104(a).

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Commercial opinion summary, case decided on October 31, 2011 , LexisNexis #1211-021

In re Piedmont Ctr. Invs. LLC

Ruling
Chapter 11 trustee appointed due to indictment of debtor's partial owner for several felonies.
Procedural posture

A bankruptcy administrator filed an emergency motion for appointment of a chapter 11 trustee under 11 U.S.C.S. § 1104(a)(1) after a federal grand jury indicted the debtor's partial owner and manager on felony counts related to bank fraud, false statements, and identity theft.

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Commercial opinion summary, case decided on September 08, 2011 , LexisNexis #0112-091

Keeley & Grabanski Land Pship v. Keeley (In re Keeley & Grabanski Land Pship)

Ruling
Chapter 11 trustee properly appointed in involuntary case due to fraud by debtors and their partners.
Procedural posture

Chapter 11 debtor challenged a decision of the U. S. Bankruptcy Court for the District of North Dakota, appointing a trustee in its involuntary chapter 11 case under 11 U.S.C.S. § 1104(a).

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on September 06, 2011 , LexisNexis #0911-130

In re Celeritas Techs. LLC

Ruling
Chapter 11 trustee appointed due to debtors' improper attempt to use bankruptcy to retain assets and evade debts to creditors.
Procedural posture

In these substantively consolidated cases, a judgment creditor filed a motion to appoint a Chapter 11 trustee pursuant to 11 U.S.C.S. § 1104(a).

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Commercial opinion summary, case decided on March 14, 2011 , LexisNexis #0411-064

In re Golden Grove Pecan Farm

Ruling
Chapter 11 trustee appointed in case of receivership.
Procedural posture

The debtors were receiverships created by order of the state court. In a contested matter, the U.S. trustee filed a motion to appoint a chapter 11 trustee, related parties filed a motion to substitute real parties in interest, and the state court appointed receiver filed a notice of intent to comply with orders of the state court by turning over property of the estate to the related parties.

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Commercial opinion summary, case decided on September 02, 2010 , LexisNexis #1010-024

In re JNL Funding Corp.

Ruling
Examiner appointed to investigate allegations of fraud, dishonesty, incompetence, misconduct and mismanagement of chapter 11 debtor.
Procedural posture

Debtor filed a petition for relief pursuant to chapter 11 of the Bankruptcy Code. The case was marked by increasing acrimony, motion practice, letters to the court, and discovery disputes, all of which appeared to be increasing the costs of administration of the estate and the costs to parties-in-interest. The court directed debtor to appear and show cause why an examiner should not be appointed.

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Commercial opinion summary, case decided on August 26, 2010 , LexisNexis #1010-101

In re Ricco Inc.

Ruling
Chapter 11 trustee appointed due to gross mismanagement.
Procedural posture

The United States Trustee (UST) sought the appointment of chapter 11 trustees in debtors' bankruptcy cases on grounds of gross mismanagement and incompetence. Debtors applied to employ bankruptcy counsel.

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Commercial opinion summary, case decided on June 28, 2010 , LexisNexis #0910-097