In re Four Wells Limited

Nos. 15-8020.8021/8022/8023 (6th Cir. BAP April 12, 2016)
Bankruptcy court did not abuse its discretion in ruling on motion to dismiss without holding hearing on Chapter 11 Plan and Disclosure Statement, or in dismissing debtors' cases, but did abuse its discretion in enjoining debtors from filing another bankruptcy case for one year because there was no evidence of bad faith or abuse of the bankruptcy system.
Procedural context:
Appeal from Bankruptcy Court for the Northern District of Ohio
After Debtors had successfully obtained two extensions of their exclusivity period for filing a Chapter 11 plan, they sought a third extension and their principal creditor filed an objection and a motion to dismiss their cases based on various alleged misconduct in the case. The day before the hearing on the motions to dismiss, one of the Debtors filed its Plan and Disclosure Statement. The bankruptcy court held the scheduled hearing on the motion to dismiss and granted the motion, without holding a hearing on the Plan and Disclosure Statement. The court also enjoined the Debtors from filing another bankruptcy case for one year.
Harrison, Preston & Wise, Bankruptcy Appellate Panel judges

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