Western States Inc Chapter 11 Conversion Motion Decision

Fri, 24 Apr 2026 02:42:08 +0000
Bankruptcy

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.