In Re Diversified Capital Corp.

Good Law

1988 WL 80076·18 Bankr. Ct. Dec. (CRR) 9·19 Collier Bankr. Cas. 2d 610·1988 Bankr. LEXIS 1156·89 B.R. 826

United States Bankruptcy Court, Central District of CaliforniaJuly 14, 1988Bankruptcy LA 82-20651-SBCalifornia3,026 words

Opinion

Bufford, J.

OPINION RE APPOINTMENT OF COMMITTEE OF SECURED CREDITORS

I. INTRODUCTION

This motion raises the issue of whether the Court has the power to appoint a committee of creditors after the confirmation of a Chapter 11 plan. A motion to appoint a committee of secured creditors is brought by secured creditors American Security Bank as Trustee for the International Brotherhood of Painters & Allied Trades and the Culinary Workers Local 206 Officers, Business Agents, & Employees Severance Annuity Pay Plan (“the unions”).

The Court holds that a committee of creditors, including a committee of secured creditors, may be appointed after the confirmation of a Chapter 11 plan, but before the plan is consummated.

II. FACTS

Diversified Capital Corporation (“Diversified”) filed this bankruptcy case on November 26, 1982. Its Chapter 11 plan was confirmed on March 31, 1986.

The principal business of Diversified was the ownership and development of Nellis Industrial Park, an area of land totalling approximately one half of a square mile (330 acres) in North Las Vegas, Nevada (“the Nellis property”) . The confirmed plan provided for Diversified to attempt to sell or to refinance the property for a…

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