(B.A.P. 6th Cir. June 22, 2015)
The bankruptcy appellate panel affirms the bankruptcy court’s order denying the debtor’s motion to remove the chapter 11 trustee and its order denying the chapter 11 trustee’s motion for instructions. The debtor failed to present proof of any undisclosed conflicts, incompetency, or wrong doing on the part of the trustee, and thus the bankruptcy court held there was no cause to remove the trustee. The appellate court holds there is no indication that the bankruptcy court abused its discretion in making this decision. The court also affirms the denial of the trustee’s motion for instructions. The trustee asked for instructions as to whether to continue to make payments to the debtor after he had been barred from operating the business. The court holds that this decision should be made by the trustee, as it deals with the day-to-day operations of the debtor’s business and the bankruptcy court should not weigh in on such business decisions. Opinion below.
Author: Matt Lindblom