Full text
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF WEST VIRGINIA
In Re:
Panthera Enterprises, LLC,
Case No. 19-00787
Debtor in Possession.
Chapter 11
UNITED STATES TRUSTEE’S MOTION TO DISMISS OR CONVERT
The Acting United States Trustee, John P. Fitzgerald, III, by counsel, moves the Court to
dismiss this case or convert it to Chapter 7 pursuant to 11 U.S.C. §1112(b), and states that:
Factual Background and Procedural History
1.
The debtor filed a voluntary Chapter 11 petition on September 13, 2019.
2.
The debtor owns real property located at 2506 Fish Pond Road, Old Fields, West
Virginia, 26845, which includes various improvements, structures and attached personal property
(the “Property”). The property is utilized as a training facility primarily by an unaffiliated
lessee, Panthera Training, LLC.
3.
The Debtor’s schedules value the Property at $15,050,000.00.
4.
Shortly after filing, the Debtor provided the United States Trustee with proof of
insurance establishing both liability and casualty insurance through October 30, 2019.
5.
Following expiration of these insurance certificates, the UST asked the Debtor to
provide proof of current insurance.
6.
The UST has been provided with proof of liability insurance through the lessee,
Panthera Training, LLC, but has not been provided with proof of casualty insurance.
No. 2:19-bk-00787 Doc 112 Filed 04/07/20 Entered 04/07/20 18:19:27 Page 1 of 4
7.
Th UST has concluded that there is no casualty insurance currently in place with
respect to the Property.
GROUNDS TO DISMISS:
Failure to Maintain Appropriate Insurance
1.
Upon information and belief, the Debtor is not maintaining casualty insurance
with respect to the Property. For an asset with the value of the Property, the failure to maintain
casualty insurance poses an unreasonable risk to the value of the estate. The failure to maintain
appropriate insurance that poses a risk to the public or the estate is cause to convert or dismiss
this case under 11 U.S.C. §1112(b)(4)(C).
Debtor’s Burden to Avoid Conversion or Dismissal
2.
This motion establishes cause to dismiss or convert this case under 11 U.S.C.
§1112(b)(4)(C). The debtor may avoid conversion or dismissal only by establishing all of the
following conjunctive conditions set forth in 11 U.S.C. §1112(b)(2):
(1)
unusual circumstances such that dismissal or conversion is not in the best interest
of creditors. [11 U.S.C. §1112(b)(2)]; and
(2)
a reasonable likelihood that a plan will be confirmed within a reasonable period of
time. [11 U.S.C. §1112(b)(2)(A)] and
(3)
a reasonable justification for the acts and omissions of the debtor, and that they
will be cured within a reasonable period of time fixed by the court. [11 U.S.C. §1112(b)(2)(B)].
3.
The United States Trustee is unaware of any unusual circumstances that would
No. 2:19-bk-00787 Doc 112 Filed 04/07/20 Entered 04/07/20 18:19:27 Page 2 of 4
prevent dismissal of this case and there does not appear to be a reasonable justification for the
acts and omissions of the debtor that are the basis of this motion. 11 U.S.C. §1112(b)(2).
WHEREFORE, the United States Trustee requests that the Court dismiss this case or
convert it to one under Chapter 7, and for such other or further relief that is proper.
Dated: April 7, 2020
Respectfully submitted,
JOHN P. FITZGERALD, III
ACTING UNITED STATES TRUSTEE
By Counsel
/s/ Gary O. Kinder
Gary O. Kinder, WV Bar No. 7732
Attorney, Office of U.S. Trustee
United States Courthouse, Room 2025
300 Virginia Street, East
Charleston, WV 25301
(304) 347-340
No. 2:19-bk-00787 Doc 112 Filed 04/07/20 Entered 04/07/20 18:19:27 Page 3 of 4
CERTIFICATE OF SERVICE
I certify that on this day I electronically filed the Motion to Dismiss or Convert with the
Clerk of the Court using the CM/ECF System, which will send notice of such filing to the
following CM/ECF participants:
Robert S. Bernstein, Esq.
Mark A. Lindsay, Esq.
John J. Richardson, Esq.
Attorneys for Debtor
April 7, 2020
/s/ Gary O. Kinder
Gary O. Kinder, WV Bar No. 7732
Attorney, Office of U.S. Trustee
United States Courthouse, Room 2025
300 Virginia Street, East
Charleston, WV 25301
(304) 347-3400
No. 2:19-bk-00787 Doc 112 Filed 04/07/20 Entered 04/07/20 18:19:27 Page 4 of 4