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Chapter 11
Appointment of a Chapter 11 Trustee
a. Cause for appointment: There is cause for the appointment
A Chapter 11 bankruptcy trustee may be appointed for example, if the bankruptcy debtor in
possession (either before or after the filing of the bankruptcy
petition) commits acts showing fraud, dishonesty, incompetence, or gross
mismanagement.
Grounds for Appointment
(i) The bankruptcy debtor used employees' funds (withheld for taxes, union dues, and contributions),
(ii) The bankruptcy debtor issued checks knowing that there were inadequate funds in the bank, and
(iii) The bankruptcy debtor failed to keep accurate financial records, a Chapter 11 trustee was appointed to replace the bankruptcy debtor's current management.
b. Burden of proof: The party requesting appointment of a Chapter 11 bankruptcy trustee must prove that sufficient cause exists, and the standard applied is that of "clear and convincing evidence."
Duties of a Chapter 11 Trustee
(1) To account for all property received;(2) To examine proofs of claims and object to the allowance of any improper ones;
(3) To provide information requested by parties in interest to their lawyers about the estate and the administration of the bankruptcy estate;
(4) If the bankruptcy court authorizes the operation of the bankruptcy debtor's business, to file periodic financial reports, including a statement of receipts and disbursements, with the court, the United States trustee, and the appropriate taxing authorities;
(5) To prepare and file with the bankruptcy court and with the United States trustee a final report and account concerning the bankruptcy case;
(6) To file any document required under Bankruptcy Code list of creditors, schedule of assets and liabilities that has not been filed by the debtor
(7) To investigate the bankruptcy debtor's conduct, financial condition, and business operations, as well as the advisability of continuing the debtor's business
(8) To file a report of the investigation, relating any acts evidencing fraud, dishonesty, incompetence, misconduct, or mismanagement, and to send a copy of the findings lo any creditors' committee or equity security holders' committee
(9) To file a Chapter 11 bankruptcy plan as soon as feasible, or recommend conversion of the case to another chapter.
(10) To provide available information to the taxing authorities concerning any year for which the bankruptcy debtor failed lo file a return and
(11) After a bankruptcy plan has been confirmed, to file any required reports.
Authority to operate debtors business
A trustee who is appointed in a Chapter 11 bankruptcy case is authorized to manage the business of the bankruptcy debtor, unless the bankruptcy court rules otherwise. As a consequence, the trustee replaces the debtor's directors, and they must surrender the corporation's property to the trustee.Termination of a Trustee
The trustee's appointment may be terminated by the bankruptcy court at any lime before a bankruptcy plan is confirmed. Such a request may be made by a party in interest or by the United States trustee, after which, upon proper notice, the bankruptcy court conducts a hearing to determine the advisability of (i) terminating the trustee's appointment and (ii) restoring the estate property and the operation of the business to the bankruptcy debtor.
North Park San Diego
North Park is a neighborhood in San Diego, California, USA. It is situated to the northeast of Balboa Park, bounded on the north by El Cajon Boulevard, on the south by Juniper Street and the South Park neighborhood, on the east by Interstate 805 and City Heights, and on the west by Florida Canyon and Hillcrest. (As a side note, the pre-Interstate 805 boundary of North Park was widely considered to be 35th Street, which is now part of City Heights.)
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