Thurner Industries, Inc., et al. v. Gunnison Energy Corp. (In re Riviera Drilling & Exploration Co.)
- Citation:
- --- B.R. ----, 2013 WL 6623647
- Tag(s):
-
- Ruling:
- Although there is a 300-day deadline for filing a plan of reorganization and disclosure statement in a small business Chapter 11 bankruptcy, such deadline applies only to the debtor, and does not apply to creditors who propose a plan. The BAP therefore concluded that this case did not have to be dismissed, as argued by debtors who had failed to timely file their own confirmable plan.
The BAP also found that Debtor's principals, unsecured creditors of the Debtor who would receive no recovery under the plan, had sufficient economic management interest to entitle them to standing to bring the appeal. Moreover, though the plan has been confirmed, equitable mootness does not prevent the BAP from using its discretion to consider the merits of the appeal.
- Procedural context:
- Debtor filed a small business chapter 11, in which it filed two non-confirmed plans of reorganization. The Bankruptcy Court directed the Debtor to move for additional time within the time limit to file a confirmable plan, but before that happened, a Chapter 11 trustee was appointed to administer the case. Chapter 11 trustee engaged in various means of trying to realize value for creditors of the estate, but the trustee ended up moving to convert the case to Chapter 7. In response, creditor GEC filed its own plan of reorganization. The debtor's principals objected to the plan, but it was confirmed over their objections.
- Facts:
- Debtor owned a 43% share in various oil and gas leases in Colorado, co-owned with its principals, the Thurners. GEC was a pipeline company which transported gas from the leasehold to market.
In bankruptcy, the Chapter 11 trustee attempted to sell all the leases in a 363 sale. When this was unsuccessful, the trustee filed an adversary proceeding against the Thurners, attempting to equitably subordinate their interests, and substantially consolidate the leasehold interests.
- Judge(s):
- Michael, Nugent, and Somers
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