CH7???... Glad I no longer own…
Can’t believe no one has caught this yet. The US Trustee has moved to dismiss the confirmed CH11 case or convert it to CH7 due to non-payment of fees owed to the trustee. That’s right, CH7 may be on the way. The hearing is scheduled for April 20th. Check PACER for the details folks. It will be interesting to see the outcome of this. Will EC make payment at the last moment or fold ‘em? The following is copied from doc 328 which was filed on PACER on March 25th:
MOTION BY THE UNITED STATES TRUSTEE
TO CONVERT CASE OR IN THE ALTERNATIVE TO DISMISS CASE
Comes Richard Clippard, the United States Trustee, by and through the
undersigned attorney, and hereby moves the Court to convert the above styled case to
Chapter 7, or in the alternative to dismiss the case. In support of this Motion, the U.S.
Trustee respectfully states as follows:
NOTICE
Please take Notice that this Motion will be heard by the Court on Tuesday,
April 20, 2010 at 10:30 a.m. in the U.S. Bankruptcy Courtroom, 2d Floor, Federal
Bldg. & U.S. Courthouse, Greenup Avenue and 15th St., Ashland, KY 41101
MOTION
1. The Court has jurisdiction of this matter pursuant to 28 U.S.C. §
1334(a) and (b) and 28 U.S.C. § 157. Venue of this proceeding and for
this Motion in this District is proper pursuant to 28 U.S.C. § § 1408 and
1409. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A)
and/or (O). The United States Trustee has standing to bring this Motion
pursuant to 11 U.S.C. §1112 and §307.
Case 07-10081-jms Doc 328 Filed 03/25/10 Entered 03/26/10 13:09:17 Desc Main
Document Page 1 of 2
2. The above listed Debtor filed for Chapter 11 bankruptcy relief on
February 28, 1007. A Plan of Reorganization was confirmed by this Court
in this case on September 30, 2009.
3. Since the Confirmation of the Plan, the Debtor has not paid fees to the
U.S. Trustee. The Debtor presently owes $12,579.35 in fees to the U.S.
Trustee.
4. Accordingly, cause to convert or dismiss this case exists under 11 U.S.C.
§1112(b)(3)(K).
WHEREFORE, for the above reasons, the U.S. Trustee prays that this Court convert or
dismiss the above listed bankruptcy case.
Respectfully submitted,
OFFICE OF THE U.S. TRUSTEE
RICHARD CLIPPARD, REGION 8
_______/s/Rachelle Williams_____
BY: RACHELLE WILLIAMS
TRIAL ATTORNEY
100 E. Vine Street, Suite 500
Lexington, KY 40507
(859)233-2822
