US Bankruptcy Court DWY Docket Feed

Western States Inc Chapter 11 Conversion Motion Decision

The United States Bankruptcy Court for the District of Wyoming issued a memorandum decision on January 30, 2018, addressing the U.S. Trustee's Motion to Convert Western States, Inc.'s Chapter 11 bankruptcy case to Chapter 7 under 11 U.S.C. § 1112(b). Avana Capital, LLC and Avana Fund I, LLC, along with the U.S. Small Business Administration, joined the motion. The Trustee alleged cause for conversion based on the debtor's failure to timely file monthly operating reports and substantial continuing losses to the estate with no reasonable likelihood of rehabilitation. The debtor objected, urging the court to allow creditors to vote on its proposed plan, which it claimed would generate sufficient cash flow to pay unsecured creditors.

Mountain States Rosen LLC Chapter 11 Asset Sale

The United States Bankruptcy Court for the District of Wyoming approved Mountain States Rosen LLC's sale of substantially all assets to Swift Beef Company for $14,250,000, overruling an objection from back-up bidder Greeley Fab LLC. The July 21, 2020 memorandum opinion found the debtor demonstrated sound business reason for the sale and that Swift's offer was the highest and best bid under the approved bidding procedures. The court applied the business judgment standard, giving deference to the debtor's determination after consultation with CoBank and the Official Unsecured Creditors' Committee.

Hager Industries Inc. v. Aylesworth - Wyoming Bankruptcy False Oath Denial Ruling

Hager Industries Inc. filed an adversary complaint against debtor Shane Thomas Aylesworth in the U.S. Bankruptcy Court for the District of Wyoming, alleging the debtor knowingly and fraudulently made false oaths by failing to disclose automotive repair equipment worth $8,620.22 owned by BA's Performance and Repair LLC on his bankruptcy schedules and during his 341 meeting testimony. The equipment included a computer, compressor, millermatic mig cart, 10,000 lb. 2-post lift, and 13-ton cap puller set. The court analyzed whether a debtor must disclose assets held by a wholly-owned LLC that has been administratively dissolved, and whether false oaths regarding those assets warrant denial of discharge under 11 U.S.C. § 727(a)(4)(A).