Now Updating
In re Carol Engen

Summarizing by Bradley Pearce

Andover Covered Bridge, LLC v. Harrington

Citation:
BAP No. 16-005
Tag(s):
Ruling:
The BAP affirmed the Bankruptcy Court's dismissal of the Andover Covered Bridge, LLC's (the "Debtor") case. The BAP determined that the Bankruptcy Court had not committed clear error in determining that the Debtor's failure to timely file monthly operating reports constituted cause to dismiss the Debtor's case. The BAP also determined that the UST had no obligation to remind the Debtor of its obligation to file monthly operating reports. The BAP also found that the Bankruptcy Court had not committed clear error in determining that the Debtor's lack of income and increasing mortgage debt constituted a diminution to the estate and a plan to sell the Debtor's property was not a reasonable likelihood that the Debtor would be able to reestablish its business. The BAP determined that the record also adequately supported the Bankruptcy Court's decision to dismiss rather than convert the Debtor's case.
Procedural context:
Appeal from Orders Dismissing Case and Denying Debtor's Motion for a new trial.
Facts:
The Debtor was a single asset real estate entity whose only asset was a piece of land that was used for a seasonal amusement park operated by a non-bankrupt operating company. The non-bankrupt company ordinarily covered all expenses associated with the mortgage on the Debtor's property. However, that business suffered a drop in business due to an accident and became unable to pay the mortgages on the Debtor's property. The Debtor filed for bankruptcy in an effort to reorganize the mortgages. Once it filed for bankruptcy, the Debtor failed to timely file monthly operating reports and it brought in no income and the mortgages on its property continued to go unpaid.
Judge(s):
Feeney, Godoy, and Harwood

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