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§ 1104(a)

In re Sundale Ltd.

Ruling
Lack of confidence in person controlling partnership is not grounds for appointment of chapter 11 trustee.
Procedural posture

Debtors, a Florida limited partnership and a Florida limited liability company (LLC) , filed separate petitions under chapter 11 of the Bankruptcy Code, and the court ordered that the cases be jointly administered. Movant creditors filed a joint motion seeking appointment of a chapter 11 trustee or, in the alternative, an examiner, pursuant to 11 U.S.C.S. § 1104(a). The debtors opposed the motion.

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Commercial opinion summary, case decided on January 29, 2009 , LexisNexis #0309-086

In re Ridgemour Meyer Props. LLC

Ruling
Chapter 11 trustee appointed for cause due to debtor's concealment of property transfer.
Procedural posture

A bankruptcy debtor and its joint venturer disputed whether to continue their venture to erect a high-rise building on property contributed by the debtor, and an arbitrator determined that the debtor would control the property pending dissolution of the joint venture and a determination of the parties'rights and obligations. The debtor then filed its bankruptcy petition, and the joint venturer moved for appointment of a trustee.

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Commercial opinion summary, case decided on November 12, 2008 , LexisNexis #0209-124

In re Patman Drilling Intl Inc.

Ruling
Chapter 11 trustee appointed to oversee debtor's oil and gas well drilling operations
Procedural posture

Debtor, a Texas corporation, filed a petition under chapter 11 of the Bankruptcy Code, and a secured creditor filed a motion for appointment of a chapter 11 trustee. Other secured creditors joined the motion, while the debtor and the Official Committee of Unsecured Creditors filed objections.

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Commercial opinion summary, case decided on March 14, 2008 , LexisNexis #0408-122

In re Euro-American Lodging Corp.

Ruling
Trustee appointed in converted involuntary case as debtor mismanaged assets and had padded list of creditors to defeat petition.
Procedural posture

Chapter 7 debtor filed a motion to convert the case to chapter 11 pursuant to 11 U.S.C. § 706. Creditor filed a motion to appoint a chapter 11 trustee pursuant to 11 U.S.C. § 1104(a).

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opinion summary, case decided on April 03, 2007 , LexisNexis #0507-044

Adams v. Marwil (In re Bayou Group LLC)

Ruling
As court appointed federal equity receiver could continue to manage debtor postpetition appointment of chapter 11 trustee was not necessary.
Procedural posture

Appellant, Acting U.S. Trustee, sought review of an order of the bankruptcy court denying the U.S. Trustee's motion for the appointment of a chapter 11 trustee for debtors, an affiliated group of limited liability companies that created and managed hedge funds.

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opinion summary, case decided on February 05, 2007 , LexisNexis #0307-013

In re New Orleans Paddlewheels Inc.

Ruling
Chapter 11 trustee appointed due to evidence of malfeasance by president of debtor.
Procedural posture

Movants, a shareholder of chapter 11 debtor and a city, filed motions pursuant to 11 U.S.C. § 1104(a)(1) to appoint a trustee or an examiner. Debtor objected to both motions.

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opinion summary, case decided on September 22, 2006 , LexisNexis #1006-110

Tradex Corp. v. Morse

Ruling
Appointment of a trustee was affirmed since "cause" was established showing the need for such an appointment.
Procedural posture

The sole shareholder of appellant debtor in possession sought reversal, on behalf of the debtor, of a bankruptcy court's appointment of a trustee to take possession of the debtor as part of voluntary chapter 11 bankruptcy proceedings. The debtor objected to the motion to appoint a trustee, arguing that appellee trustee had not met her burden of establishing the need for such an appointment under 11 U.S.C. § 1104(a)(1) or (2).

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opinion summary, case decided on March 31, 2006 , LexisNexis #0406-101

In re Adelphia Communs. Corp.

Ruling
Interdebtor disputes did not evidence fraud or mismanagement warranting the appointment of a trustee for the intermediate subsidiary of a chapter 11 debtor.
Procedural posture

In this contested matter under the umbrella of the jointly administered chapter 11 cases of debtors, a communications company (parent company) and its subsidiaries, the Ad Hoc Committee of Noteholders, who were the holders of bond debt issued by an intermediate subsidiary of the parent company, one of the 231 debtors whose chapter 11 cases were being jointly administered in this court, moved for several orders, including disqualifying counsel.

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opinion summary, case decided on January 23, 2006 , LexisNexis #0206-045

In re Natl Staffing Servs. LLC

Ruling
Creditor's motion for appointment of a trustee was granted as in the best interest of the creditors but not based on finding of misconduct by debtor corporation.
Procedural posture

After the debtor, a corporation, filed for bankruptcy, movant creditors filed a joint motion pursuant to 11 U.S.C. § 1104(a) for the appointment of a trustee.

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opinion summary, case decided on November 21, 2005 , LexisNexis #0206-044