U.S. Trustee Requests Dismissal or Conversion of Crosswinds at Lone Star Ranch 1000, Ltd. Bankruptcy Case
On March 19, 2009, the United States Trustee for Region 6 filed a motion with the bankruptcy court requesting that the court dismiss the chapter 11 bankruptcy case of Crosswinds at Lone Star Ranch 1000, Ltd. or convert the case to a case proceeding under chapter 7 of the Bankruptcy Code. Crosswinds filed for bankruptcy protection on February 4, 2008 and held a large undeveloped piece of real estate. However, according to the U.S. Trustee, Crosswind's secured lender has since foreclosed on the property and the company's only remaining asset is $145,000 held by its counsel. In addition, according to the Trustee's motion, the company has failed to file monthly operating reports and to pay U.S. Trustee fees.
Therefore, the Trustee asserts that the estate continues to be diminished by the incurrence of administrative expenses without any possibility of a successful reorganization and, as such, dismissal or conversion of the case is appropriate under section 1112 of the Bankruptcy Code. Between the two options, the U.S. Trustee conditionally supports conversion.
Download copies of every document filed in this case and the cases of over 500 other major bankrupt corporations using netDockets. Sign up now for a free trial account and $100 of free research.
Therefore, the Trustee asserts that the estate continues to be diminished by the incurrence of administrative expenses without any possibility of a successful reorganization and, as such, dismissal or conversion of the case is appropriate under section 1112 of the Bankruptcy Code. Between the two options, the U.S. Trustee conditionally supports conversion.
Download copies of every document filed in this case and the cases of over 500 other major bankrupt corporations using netDockets. Sign up now for a free trial account and $100 of free research.
blog comments powered by Disqus
