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§ 1112(b)(1)

In re Loco Realty Corp.

Ruling
Case dismissed where chapter 11 plan was not feasible due to absence of source of funding.
Procedural posture

The successor to a predecessor creditor moved to dismiss the debtor's chapter 11 case pursuant to 11 U.S.C.S. § 1112(b)(1) for cause. Alternatively, the successor moved to dismiss, suspend, or abstain from presiding over the debtor's case pursuant to 11 U.S.C.S. § 305(a).

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Commercial opinion summary, case decided on June 25, 2009 , LexisNexis #0809-053

In re Easthaven Marina Group LLC

Ruling
Motion to dismiss denied where totality of circumstances demonstrated debtor had filed in bad faith.
Procedural posture

The debtor filed for chapter 11 bankruptcy protection. The debtor's schedules provided for a contingent and disputed unsecured claim in favor of a holding company. The schedules included two additional unsecured creditors. The holding company moved to dismiss the debtor's bankruptcy case pursuant to 11 U.S.C.S. § 1112(b)(1). The court held a hearing on the motion.

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Commercial opinion summary, case decided on February 25, 2009 , LexisNexis #0409-057

In re Forest Hill Funeral Home & Mem. Park - East LLC

Ruling
Case dismissed for bad faith where funeral home debtor made improper investments, failed to keep adequate records and intended to thwart state enforcement proceedings.
Procedural posture

A bankruptcy debtor owned and operated cemeteries, funeral homes, and mausoleums, and filed its chapter 11 bankruptcy petition after becoming unable to honor prepaid contracts for funeral arrangements. A state agency which regulated the funeral home, cemetery, and mausoleum business moved to dismiss the debtor's case or for abstention in favor of pending state proceedings for appointment of a receiver for the debtor.

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opinion summary, case decided on March 26, 2007 , LexisNexis #0507-045

In re Legacy Estate Group LLC

Ruling
Conversion to chapter 7 denied where confirmation of plan was likely and would result in possible full dividend to creditors.
Procedural posture

A creditor filed a motion, pursuant to 11 U.S.C. § 1112(b)(1), to convert a debtor's chapter 11 bankruptcy case to chapter 7, which motion was opposed by all the other constituencies.

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opinion summary, case decided on October 09, 2006 , LexisNexis #1106-043

In re Rynerson

Ruling
Motion to convert or dismiss chapter 11 case denied where creditors'position would not be improved.
Procedural posture

After a debtor's amended chapter 11 plan of reorganization was confirmed, the hospital moved to reopen the case and to either convert the case to chapter 7 or dismiss the chapter 11 case on the grounds that the debtor did not comply with the plan on payments to unsecured creditors or on liquidation of estate assets and that the debtor failed to disclose assets. The debtor objected to the motion.

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opinion summary, case decided on October 05, 2006 , LexisNexis #1106-131

In re 3 Ram Inc.

Ruling
Case was dismissed since bankruptcy filing was not warranted to resolve two-party dispute over liquor license.
Procedural posture

A corporate bankruptcy debtor existed only to hold a liquor license which was used in the business of the debtor's sole shareholder, and the debtor filed bankruptcy to avoid a creditor's execution against the license based on allowance of the creditor's claim in the shareholder's bankruptcy. The creditor moved to dismiss the debtor's bankruptcy case for cause pursuant to 11 U.S.C. § 1112(b)(1).

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opinion summary, case decided on May 09, 2006 , LexisNexis #0806-044