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§ 305

In re Webster Hospitality Dev. LLC

Ruling
Involuntary petition dismissed where state court proceeding would properly address best interest of creditors and members of debtor LLC.
Procedural posture

Three creditors filed a second involuntary petition against a limited liability company (LLC), and the LLC filed a motion to dismiss the petition pursuant to 11 U.S.C.S. §§ 303 and 305. The court held a hearing on the LLC's motion.

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Commercial opinion summary, case decided on August 27, 2009 , LexisNexis #0909-111

In re Seff Enters. & Holdings LLC

Ruling
Asset-less case dismissed as not benefitting creditors or debtor.
Procedural posture

Movant, a member of the debtor, filed a motion seeking for the court to dismiss, abstain, or grant relief from the voluntary petition, under 11 U.S.C.S. §§ 707(a), 305(a)(1), and 362(d)(1), filed by the other member of the debtor.

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Commercial opinion summary, case decided on August 26, 2009 , LexisNexis #1009-037

Sadigursky,In re--Sadigursky v. LSF9 Master Participation Trust

Ruling
Proceeding was suspended in favor of adjudication by the New York Supreme Court as thelatter would have a better handle on the said foreclosure case which involved New Yorkstatutes. (Bankr. W.D.N.Y.)
Issue(s)
Abstention; Appeal of Order for Dismissal or Suspension Restricted.

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Consumer opinion summary, case decided on March 18, 2009 , LexisNexis #0917-061

In re Central Ill. Energy LLC

Ruling
Creditor allowed an administrative expense claim for insurance paid on water treatment facility leased to debtor.
Procedural posture

Debtor, a Delaware limited liability company, filed a petition under chapter 11 of the Bankruptcy Code in December 2007, and the court converted the case to one under chapter 7 in August 2008. A creditor filed a motion for allowance of an administrative expense claim, and the chapter 7 trustee filed an objection to the motion.

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Commercial opinion summary, case decided on November 25, 2008 , LexisNexis #0109-038

In re Birchall

Ruling
Bankruptcy court declined to hear claims related to state civil contempt proceedings against debtor.
Procedural posture

Movant creditor asked the court to abstain from adjudicating claims asserted by debtor on the ground that they were already being adjudicated in state court and further asked the court to dismiss the case pursuant to 11 U.S.C. § 305. Debtor sought relief under 11 U.S.C. § 362.

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Consumer opinion summary, case decided on January 22, 2008 , LexisNexis #0208-106

In re Compania de Alimentos Fargo S.A.

Ruling
Bankruptcy court abstained from involuntary case against foreign debtor given pending proceeding in Argentina.
Procedural posture

Petitioners, creditors of an Argentine debtor, filed an involuntary chapter 11 petition. The Argentine debtor filed a motion to dismiss the petition on various grounds, including abstention under 11 U.S.C. § 305(a)(1), pointing out that a current "concurso preventivo" reorganizing the debtor was pending in Argentina. The court converted part of the debtor's motion to one for summary judgment.

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Commercial opinion summary, case decided on October 12, 2007 , LexisNexis #1107-005

In re Mylotte David & Fitzpatrick

Ruling
State court action with judge as "quasi-receiver" for debtor did not present grounds for dismissal of involuntary case which could better serve as single forum to resolve issues.
Procedural posture

Major creditors of the debtor partnership filed involuntary petitions. The debtor filed an answer, pursuant to argues that this involuntary petition should be dismissed pursuant to Fed. R. Bankr. P. 1011, moved for abstention pursuant to 11 U.S.C. § 305, arguing it was already a party to a "quasi-receivership" proceeding in state court. The creditors opposed the motion for abstention.

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Commercial opinion summary, case decided on October 11, 2007 , LexisNexis #1107-072

In re L&M Video Prods.

Ruling
Court declined to exercise jurisdiction over chapter 11 where debtor had no ability to reorganize and only sought to better position itself for non-bankruptcy disputes.
Procedural posture

Chapter 11 creditor filed a motion to dismiss the debtor's case for cause under 11 U.S.C. § 1112(b) or alternatively, to abstain from exercising jurisdiction pursuant to 11 U.S.C. § 305(a).

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opinion summary, case decided on June 25, 2007 , LexisNexis #0807-072

In re Loe

Ruling
Involuntary case filed against state's attorney by inmate he convicted of murder dismissed for bad faith.
Procedural posture

Debtor, an assistant state attorney, filed an emergency motion to dismiss an involuntary bankruptcy proceeding filed pursuant to 11 U.S.C. § 305(b) that had been filed against him by a purported creditor whose criminal conviction had resulted from a prosecution handled by the alleged debtor. At issue was whether the petition was properly dismissed as a bad faith filing.

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opinion summary, case decided on March 29, 2007 , LexisNexis #0507-004

In re IBD Inc.

Ruling
Involuntary case dismissed where debtor had ceased operation and had limited assets.
Procedural posture

Petitioning creditors filed an involuntary chapter 7 petition against the alleged debtor. The issue was whether the petition should be dismissed pursuant to 11 U.S.C. § 305.

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opinion summary, case decided on March 03, 2007 , LexisNexis #0407-125