In re Jay Bee Enterprises, Inc., Bankruptcy No. 92-51846.
Decision Date | 07 March 1997 |
Docket Number | Bankruptcy No. 92-51846. |
Parties | In re JAY BEE ENTERPRISES, INC. a/k/a Bass Master Boats, Debtor. |
Court | United States Bankruptcy Courts. Tenth Circuit. U.S. Bankruptcy Court — Eastern District of Kentucky |
W. Thomas Bunch, Lexington, KY, for Debtor.
Elizabeth H. Brittain, Lexington, KY, for U.S. Trustee.
This case is before the court on the objection of the United States Trustee to the "Final Report" of the debtor in possession. The debtor in possession filed its final report on October 10, 1996.
The report was filed in response to an order of the court setting a status conference to determine why a final report had not been filed and why the case should not be closed.
The U.S. Trustee objects to the report on the ground the report is "erroneous and premature" in that the debtor has not paid U.S. Trustee fees that have accrued on and after January 27, 1996, as imposed by 28 U.S.C. § 1930(a)(6), as amended.
The debtor, a manufacturer of small recreational boats, filed a petition for relief under chapter 11 of the Bankruptcy Code on October 7, 1992. The debtor filed its disclosure statement and plan on October 1, 1993. The disclosure statement was approved by the court on November 15, 1993. The plan was accepted by creditors and was confirmed by the court on February 18, 1994.
The record indicates that under the confirmed plan the debtor was to pay all of its net monthly earnings in excess of $2,500 toward satisfaction of the claim of Melvin C. and Rebecca Redecker, assignees of the Bank of Danville, the only creditors holding a secured claim. Although the bank's claim was for approximately $433,000, by agreement, the assignment limited the claim of the Redeckers to $250,000, plus interest. The bank agreed to waive the balance of its claim against the debtor and the officers and equity security holders of the debtor who had guaranteed the indebtedness.
Under the plan the debtor was to pay in full local, state, and federal tax claims aggregating $57,167.11.
Under the plan the debtor is to pay in full creditors holding unsecured claims in the aggregate amount of $35,433.88.
Finally, the debtor was to pay administrative expenses, primarily attorney fees and expenses, initially estimated to be $30,000, but which were finally fixed at $19,217.56, less a retainer of $10,000, leaving $9,217.56 to be paid under the plan.
Payments to unsecured creditors were not to commence until the foregoing administrative expense was paid in full.
The duration of the plan was stated to be five years or until all administrative claims, tax claims, and unsecured claims are paid in full.
The final report of the debtor in possession indicates that as of October 10, 1996, approximately two and one-half years into the plan, the debtor has paid $54,376.05 to the Redeckers on their secured claim, $14,469.79 on the tax claims aggregating $57,167.11, and $7,000 of the $9,217.56 attorney fee. Thus far there has been no distribution to creditors holding unsecured claims aggregating $35,433.88. The debtor may be faltering in carrying out the plan, but that issue is not before the court.
CONCLUSIONS OF LAW:
Title 11 U.S.C. § 1106(a)(1) incorporates by reference title 11 U.S.C. § 704(9), which requires a trustee to make a final report and file a final account of the administration of the estate with the court and with the United States Trustee.
Rule 3022 of the Federal Rules of Bankruptcy Procedure provides that after an estate has been fully administered in a chapter 11 reorganization case, the court, on its own motion or on motion of a party in interest, shall enter a final decree closing the case. Title 11 U.S.C. § 350(a) instructs that after an estate is fully administered and the court has discharged the trustee, the court shall close the case. Ordinarily, the status of the debtor in possession as a trustee is terminated upon the confirmation of the debtor's chapter 11 plan. At that point in time, unless the plan or order confirming the plan provide otherwise, the confirmation of the plan vests all property of the estate in the debtor. 11 U.S.C. § 1141(b). Also, except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors. 11 U.S.C. § 1141(c).
An Advisory Committee Note (1991) to Rule 3022 indicates:
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