In Re: Consolidated Pioneer Mortgage Entities, Debtor Pioneer Liquidating Corporation v. United States Trustee

Pioneer Liquidating Corporation (“PLC”) appeals the decision of the Bankruptcy Appellate Panel (“BAP”), affirming the bankruptcy court’s order converting a failed Chapter 11 reorganization to a Chapter 7 estate and requiring PLC to make an accounting and turn over assets to a Chapter 7 trustee. We have jurisdiction, 28 U.S.C. § 158 (b)-(e), and we affirm.

I

In January 1991, six debtors, collectively known as Consolidated Pioneer Mortgage Entities (“Debtor”), filed consolidated petitions for relief under Chapter 11 of the Bankruptcy Code. In response to disputes that arose among factions of the 2,800 investors regarding their expected returns from the bankruptcy estate, the Debtor and the Official Creditors’ Committee filed a Joint Plan of Reorganization (“Joint Plan”) in 1992.

The Joint Plan created PLC as an independent liquidating corporation “formed in a manner to implement and fulfill the pur poses of the Plan.” According to the Joint Plan:

In addition, the Joint Plan provided for the creation of a board of directors (“Board”) and assigned to PLC duties and powers to manage the estate properties; compromise claims; examine proofs of claims; and hire professionals to help…