In Re the 1031 Tax Group, LLC

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• noting that “well-founded distrust and a lack of confidence in the Debtors, even with their new management … standing alone, would point to the appointment of a chapter 11 trustee”
• finding pre-petition change in management sufficient to defeat motion for 1104 trustee, given evidence that new management was “free from any taint associated with … prior management”
• noting factors that bankruptcy courts consider when applying Section 1104(a)(2), including “the benefits derived by the appointment of a trustee, balanced against the cost of appointment” (quotation marks omitted)
• “When considering whether to appoint a trustee for cause, a court’s focus is on the debtor’s current management, not the misdeeds of past management.”
• “Although section 1104 requires a bankruptcy court to appoint a trustee if the requirements of the statute are met, a court has wide discretion in considering the relevant facts.”
• “The exception to conversion under § 1112(b)(2) is inapplicable here because the creditors seek conversion [pursuant to § 1112(b)(4)(A)] based on the loss and diminution of estate assets and absence of a reasonable likelihood of rehabilitation”

Source: CourtListener parenthetical corpus (CC0).