Opinion
Case No. 00-21915-JTF
February 19, 2003
ATTORNEYS FOR CHAPTER 11 TRUSTEE; SPENCER FANE BRITT BROWNE LLP, David C. Seitter, Eric L. Johnson, Kansas City, Missouri.
ORDER CONVERTING CHAPTER 11 CASE TO A CHAPTER 7 CASE
Now, on this 19th day of February, 2003, this matter came before the Court on David C. Seitter's, the Chapter 11 Trustee in the captioned case (the "Trustee") Motion to Convert Chapter 11 Case to a Chapter 7 Case (the "Motion"). The Trustee appears by and through his counsel, Eric L. Johnson. Other appearances are as noted on the Court's Minute Sheet. The Court, after being duly advised in the premises, and after noting that no objections were filed, makes the following findings of fact and conclusions of law:
1. On August 4, 2000 (the "Filing Date"), the debtor Turner Boisseau, Chartered ("Debtor") filed a voluntary petition for bankruptcy under Chapter 11 of the United States Code, 11 U.S.C. § 101 through 1146 (the "Code").
2. Debtor at the time of filing, was a debtor-in-possession pursuant to Code §§ 1107 and 1108. On April 24, 2001, David C. Seitter was appointed the Chapter 11 Trustee in this matter.
3. Debtor was the owner of certain personal property, including without limitation, cash on hand, bank accounts and accounts receivable.
4. Through the operation of Debtor's business, Debtor generated additional account receivables and other income and account sources. Such assets constituted cash collateral pursuant to Code § 363(a).
5. The Court by Order dated August 15, 2000 and by subsequent Orders concluding most recently with the Order dated August 21, 2002 (the "Final Cash Collateral Order") which granted the Debtor and subsequently the Chapter 11 Trustee the right to use the cash collateral of MR Investments ("MR"), a secured creditor.
6. MR, as successor to the Bank of America, has been determined by this Court to have a perfected, first priority lien and security interest in the account receivables of the Debtor in the approximate amount of $638,656.28, together with interest, costs and fees as of the date of the filing.
7. The Debtor reached an agreement with MR whereby MR consented to Debtor's use (and ultimately the Trustee's use) of the cash collateral subject to the terms and conditions set forth in the proposed order (the "Stipulation") originally filed in this case.
8. Pursuant to Code § 1112(b), the Trustee believes that "cause" exists for this case to be converted to a case under Chapter 7. Pursuant to various Orders entered by the Court, the Trustee did disburse funds to MR, numerous general administrative creditors, employees and professionals throughout the months of November and December 2002 and concluding on December 31, 2002 (the "Disbursements"). The Disbursements have left the Estate's operating account with a zero balance. The Disbursements were made by December 31, 2002 so that the Estate would not incur the additional liability of having to prepare a 2003 tax return.
9. With the completion of the Disbursements, the Trustee has substantially completed administration of the above estate with the exception of some minor assets and related issues, such as disposition of funds held in Debtor's IOLTA Trust Account and the disposition of certain documents held in storage. These matters would be best resolved in a Chapter 7 Case.
IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that the Motion is hereby granted.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the captioned bankruptcy case is hereby converted to a Chapter 7 case.
IT IS SO ORDERED.