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In Re Curlew Valley Associates

5 C.B.C.2d 255, 14 B.R. 506, 8. B.C.D. 495 (1981)

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In Re Curlew Valley Associates

United States Bankruptcy Court for the District of Utah
5 C.B.C.2d 255, 14 B.R. 506, 8. B.C.D. 495 (1981)

  • Written by Philip Glass, JD

Facts

In May 1980, Curlew Valley Associates (Curlew) (debtor) filed for Chapter 11 bankruptcy. In December 1980, a Chapter 11 trustee was appointed. On April 3, 1981, the bankruptcy court ordered the dismissal of the case unless Curlew could confirm a plan before July 4, 1980, a deadline later moved to August 1, 1980. To satisfy the duty to manage Curlew’s agribusiness, the trustee determined that Curlew’s estate should be liquidated rather than reorganized, which would require baling rather than cubing the agribusiness’s hay. The trustee provided adequate reasoning to support its decision. In opposition, Curlew argued that baling would prove agronomically unfeasible, lead to considerable financial loss, and hinder plan confirmation. However, Curlew neither argued that the circumstances justifying the appointment had changed nor argued that the trustee was financially irresponsible. Curlew moved for judicial interference with the trustee’s decision under 11 U.S.C. § 1108 (which, barring court order, authorizes the trustee's operation of the debtor's business) or for terminating and replacing the trustee under 11 U.S.C. § 1105 (which authorizes judicial termination of a trustee after notice and a hearing).

Rule of Law

Issue

Holding and Reasoning (Mabey, J.)

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