The US Trustee seems to have had a different view of the Pro Mold trustee's performance.
The trustee resigned because, despite having access to all the books, assets, etc., he could not even pay himself.
6. The Debtor, accordingly, has no business to operate. Upon information and belief, the trustee did not intend to administer any additional assets, e.g., possible causes of action against insiders and others, or to reorganize. This state of affairs represents a “substantial . . . loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation.” 11 U.S.C. § 1112(b)(4)(A).
7. In addition, the chapter 11 trustee has tendered his resignation, which the United States Trustee has accepted, effective March 20, 2008. Upon information and belief, no purpose is served by keeping this case in chapter 11. The need to convert this case on short notice was created by this unexpected resignation on short notice.
8. Upon information and belief, the trustee has not made an allowance for the filing of tax returns in this case when they are due, and for potential tax liabilities. Such a failure constitutes cause to convert. 11 U.S.C. § 1112(b)(4)(I).
9. The Debtor has failed to file with the Court monthly operating reports for the month of January 2008 as required by the United States Trustee pursuant to 11 U.S.C. § 1106(a)(1) (incorporating 11 U.S.C. § 704(8)) and Fed. R. Bankr. P. 2015(a)).[1]
[1]The Report for December 2007 was filed on March 14, 2008, approximately 60 days past due.
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03/17/2008 382 Emergency Motion to Convert Case From Chapter 11 to 7, filed by U.S. Trustee |
