Gates

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

10 IN RE: KARMA CAPITAL, INC., CASE NO. 19cv1070-LAB (KSC) [BANKRUPTCY NO. 19-01962-LA7]

MARC AND TRISHA GATES,

ORDER AFFIRMING BANKRUPTCY Appellants,

COURT’S MAY 23, 2019 ORDER

13 vs. 14 SANTEE TROLLEY SQUARE 991, LP, et al.

Appellees. Appellants Marc and Trisha Gates appeal the Bankruptcy Court’s May 23, 2019 Order on Motions to Convert Case under Chapter 11 to Case under Chapter 7. This Court has jurisdiction under 28 U.S.C. § 158 and affirms. The parties are familiar with the facts, so the Court repeats only those necessary to explain this result. Appellants are the owners of Karma Capital, a company that operates several Greek restaurants in the San Diego area. In April 2019, Karma Capital filed for Chapter 11 bankruptcy, a decision that was driven primarily because the company “was facing eviction at six of its locations, and it needed time to try to negotiate with the landlords . . . .” See Appellants’ Reply Brief,…