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§ 1104

Taub v. Taub (In re Taub)

Ruling
Chapter 11 trustee appointed due to debtor's demonstrated inability to manage estate effectively.
Procedural posture

A Chapter 11 debtor-in-possession filed a motion to restrain defendant, her husband, from collecting rental income from properties titled in her name. The husband's sister filed a motion for an order compelling the debtor to pay administrative expenses relating to certain real property. The court issued an order to show cause (OSC) why it should not consider the appointment of a trustee under 11 U.S.C.S. § 1104(a)(2) or (a)(3).

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Consumer opinion summary, case decided on April 09, 2010 , LexisNexis #0610-101

In re Erickson Ret. Cmtys. LLC

Ruling
Motion for appointement of examiner denied for lack of standing.
Procedural posture

Debtors, various LLCs and other entities, filed petitions under chapter 11 of the Bankruptcy Code, and the court ordered joint administration of the debtors' bankruptcy estates. Creditors that held subordinated debt against several of the debtors, filed a motion for an order appointing an examiner pursuant to 11 U.S.C.S. § 1104. The motion was opposed, inter alia, by a bank that was the agent for senior secured lenders.

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Commercial opinion summary, case decided on March 05, 2010 , LexisNexis #0510-098

In re Eurospark Indus.

Ruling
Chapter 11 trustee appointed due to conflict of interest on part of debtor in possession's sole shareholder.
Procedural posture

Debtor jewelry company filed a petition under chapter 11 in 1998, and was allowed to operate its business as a debtor-in-possession. The United States Trustee (UST) filed a motion for an order appointing a chapter 11 trustee, pursuant to 11 U.S.C.S. § 1104(a)(2) and (3). The debtor's largest secured creditor supported the motion; however, the debtor and its sole shareholder opposed the motion.

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Commercial opinion summary, case decided on March 03, 2010 , LexisNexis #0510-034

In re Taaf LLC

Ruling
Chapter 11 trustee appointed due to manager's incompetence and gross mismanagement.
Procedural posture

A creditor filed an emergency motion for appointment of a chapter 11 trustee under 11 U.S.C.S. § 1104 based on the alleged incompetence and mismanagement of the debtor's affairs by its manager. The Bankruptcy Administrator filed a response in support of the motion. The debtor objected to the motion.

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Commercial opinion summary, case decided on February 12, 2010 , LexisNexis #0410-131

In re Daily

Ruling
Eight-year old state court judgment for misconduct was not grounds for appointment of chapter 11 trustee.
Procedural posture

This matter came before the court upon a judgment creditor's motion to appoint a chapter 11 Trustee. Debtor opposed the motion. The U.S. Trustee stated his position that a chapter 11 Trustee should not be appointed.

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Consumer opinion summary, case decided on October 19, 2009 , LexisNexis #1209-021

In re New Century Trs. Holdings Inc.

Ruling
Examiner's motion to transfer documents and information to liquidating trustee granted.
Procedural posture

The examiner of the debtors sought an order discharging him, granting him relief from discovery by third-parties, and an order permitting the transfer to the liquidating trustee of certain documents and information. The liquidating trustee moved for similar relief.

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Commercial opinion summary, case decided on May 01, 2009 , LexisNexis #0609-126

Adams v. Marwil (In re Bayou Group)

Ruling
Bankruptcy court did not err in refusing to appoint chapter 11 trustee absent justification for replacing court appointed receiver and manager.
Procedural posture

Appellant U.S. Trustee appealed from the judgment of the United States District Court for the Southern District of New York, affirming a decision of the bankruptcy court , which had rejected the trustee's petition under 11 U.S.C.S. § 1104 to appoint a trustee to manage the debtor. Prior to the bankruptcy, the district court had appointed appellee receiver to manage debtor.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on May 01, 2009 , LexisNexis #0609-090

In re Eagle Creek Subdivision LLC

Ruling
Chapter 11 trustee appointed due to dishonesty of managing LLC.
Procedural posture

In consolidated cases, the debtors filed for relief under chapter 11. The committee of holders of junior deeds of trusts and owners of tenancy-in-common interests (the Committee) filed a motion for appointment of a trustee, pursuant to 11 U.S.C.S. § 1104.

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Commercial opinion summary, case decided on March 09, 2009 , LexisNexis #0509-052

In re Burival

Ruling
Chapter 11 trustee appointed due to debtors' continued operating loss and inability to meet deadlines.
Procedural posture

A committee of unsecured creditors filed a joint motion to appoint a trustee pursuant to 11 U.S.C.S. § 1104(a), the debtors objected.

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Commercial opinion summary, case decided on February 26, 2009 , LexisNexis #0509-089

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