In re Caroline Desert Disco Inc.

5 Citing cases

  1. In re AG Service Centers, L.C.

    239 B.R. 545 (Bankr. W.D. Mo. 1999)   Cited 10 times

    Section 1104(a)(1) does not specifically list "noncompliance with court orders" or "failure to comply with the Bankruptcy Code" as causes for the appointment of a trustee, but such conduct clearly falls within the scope circumscribed by the statute — either as a "similar cause" or as a permutation of "incompetence, or gross mismanagement." See In re Caroline Desert Disco, Inc., 5 B.R. 536, 537 (Bankr.C.D.Cal. 1980) ("[T]he current management's failure to comply with the Court's rules on insurance, operating controls, and reports to the U.S. Trustee constitutes incompetence or gross mismanagement, justifying . . . appointment of a Trustee."). And if the Court determines that there is cause, which it has in this case, the appointment of a trustee is mandatory.

  2. Matter of Indiana Walnut Products, Inc., (Bankr.N.D.Ind. 1991)

    136 B.R. 522 (Bankr. N.D. Ind. 1991)   Cited 9 times

    See In re Graydon, 8 B.R. 475, 479 (Bankr.S.D.Fla. 1981) ("the continuing of the automatic stay . . . will be conditioned upon the defendant's maintaining insurance. . . ."); the appointment of a trustee, pursuant to § 1104 (a)(1), for cause. See In re Caroline Desert Disco, Inc., 5 B.R. 536, 537 (Bankr.C.D.Ca. 1980); In re Crescent Beach Inn, Inc., 22 B.R. 155, 160 (Bankr.D.Me. 1982); and conversion or dismissal, pursuant to § 1112 (b). In extreme cases, management for the debtor-in-possession may also be exposing themselves to personal liability to the bankruptcy estate, in the event the estate would be harmed by reason of the failure to insure.

  3. In re Stein and Day, Inc.

    87 B.R. 290 (Bankr. S.D.N.Y. 1988)   Cited 6 times
    Seeking appointment insufficient

    Thus, a trustee was appointed in St. Louis Globe-Democrat, Inc., 63 B.R. 131 (Bankr.E.D.Mo. 1985), where the debtor paid operating expenses with funds withheld from employees' pay and wrote checks on accounts with insufficient funds. A trustee also was appointed in In re Caroline Desert Disco, 5 B.R. 536 (Bankr.C.D.Cal. 1980), where the debtor failed to comply with local rules. Moreover, a debtor's mismanagement warranted the appointment of a trustee in In re McCorhill Publishing, Inc., 73 B.R. 1013, when this court found that the debtor's mismanagement had conflicting interests in affiliated companies and that they had engaged in self-serving transactions which benefitted the affiliated companies and their own interests.

  4. In re Sea Queen Kontaratos Lines, Ltd.

    10 B.R. 609 (Bankr. D. Me. 1981)   Cited 5 times

    The operation of coastal cruises along the Florida coast during the winter is well within the ordinary course of the business of a debtor engaged in summer cruises along the Maine coast. Absent a local rule violation, there is no showing of gross mismanagement per se. Cf. In re Caroline Desert Disco, Inc., 5 B.R. 536, 2 C.B.C.2d 1133 (Bkrtcy.C.D.Calif. 1980) [local rule violation constitutes gross mismanagement]. The evidence demonstrates no incompetence, gross mismanagement, or other cause for the appointment of a trustee.

  5. In re Caroline Desert Disco Inc.

    5 B.R. 536 (B.A.P. 9th Cir. 1980)

    5 B.R. 536 (Bkrtcy.C.D.Cal. 1980)In re CAROLINE DESERT DISCO INC., Debtor.Bankruptcy No. SB80-00929 DN.United States Bankruptcy Court, C.D. California.July 9, 1980        James T. Eichstaedt, U. S. Trustee, Joseph C. Karol, Asst. U. S. Trustee, William H. Brownstein, Bankruptcy Atty., Los Angeles, Cal., McIntosh & Guralnick, A Professional Law Corp., Wayne S. Guralnick, Palm Desert, Cal., for Harold C. Fitzpatrick, a secured creditor.