The Bankruptcy Appellate Panel (“BAP”) held that the bankruptcy court did not did not clearly err by appointing a trustee in this Chapter 11 case in light of the allegations of fraud and misuse of property and debtors’ failure to move the case forward in a meaningful way; while not proven, the allegations against debtor were sufficiently widespread and serious to justify the appointment of the trustee.
This appeal relates to one of two separate, but related, bankruptcy cases. The first case was a voluntary Chapter 11 case filed by Thomas and Mari Grabanski on July 22, 2010. The second case – the one particularly involved here – was an involuntary Chapter 11 case filed by John and Dawn Keeley on December 7, 2010, against the Keeley and Grabanski Land Partnership, in which the Keeleys and Grabanskis were partners. This appeal involves the appointment of a trustee in the partnership’s involuntary case.
Affirmed.
