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In re Keith's Tree Farm (Case No. 15-71262) 03/18/2016

A secured lender of the Chapter 12 debtor and the Chapter 12 Trustee filed objections to confirmation of the Debtor's Chapter 12 plan.  Additionally, the creditor filed a motion to dismiss the case for abuse.   The Court considered the fact that the Debtor, a tree farming operation, most recently filed a Chapter 12 case in 2013 that was dismissed without leave to amend after four failed attempts to confirm a plan.  The Court did not believe that a viable plan could be confirmed in this case, despite the Debtor making progress since the last case including changes in leadership and its bookkeeping staff, as well as the liquidation of some of its real estate which proceeds paid down a significant portion of its secured debt.  The Court held that the Chapter 12 plan was not feasible pursuant to Section 1225(a)(6), denied leave to amend under Section 1208(c)(5) as the Debtor failed to show any reasonable likelihood of reorganization, and dismissed the case for abuse under Section 1208(c) as a result of the Debtor’s unreasonable delay and gross mismanagement with a bar on refiling for 365 days.

Date: 
Friday, March 18, 2016
Category: 
Abusive Filings
Bad Faith
Burden of Proof
Chapter 12 Issues
Confirmation of Plan
Dismissal
Chapter: 
12