The U.S. Trustee assigned to the Multimedia Platforms case filed with the U.S. Bankruptcy Court a motion to convert the Chapter 11 reorganization to a liquidation under Chapter 7 or dismiss the case or, in the alternative, appoint a Chapter 11 trustee.
The motion explains, “The failure of the Debtor to timely file MORs and the Debtor’s failure to move this case forward to confirmation could demonstrate a substantial or continuing loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation pursuant to Section 1112(b)(4)(A). The failure to timely file MORs demonstrates the unexcused failure to satisfy timely any filing or reporting requirement established pursuant to Section 1112(b)(4)(F). The failure of the Debtor to remain current on the payment of United States Trustee Fees constitutes the failure to pay any fees or charges required under chapter 123 of title 28 pursuant to Section 1112(b)(4)(K).”
In addition, “In the instant case, where there are grounds to dismiss or convert the bankruptcy case, the Court can order the appointment of a Chapter 11 Trustee if it is in the best interests of the creditors and the estate. The appointment of a Chapter 11 Trustee would be in the best interests of creditors, as further evidenced by the facts plead herein and the record in this case.”
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