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UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA 

Fort Lauderdale Division 

In re: 

Case No. 19-17544-SMG 

Seven Stars on the Hudson Corp., 

Chapter 11 

Debtor. 

_____________________________________/ 

ORDER TO SHOW CAUSE WHY CASE SHOULD NOT BE DISMISSED 

On June 19, 2020 Seven Stars on the Hudson Corp. (the “Debtor”) filed an 

Amended Petition for Non-Individuals Filing for Bankruptcy1 (the “Amended 

Petition”) in which it elected to proceed under new subchapter V of chapter 11 of the 

Bankruptcy Code. The Debtor filed its chapter 11 bankruptcy petition on June 5, 

1 ECF No. 178. 

Scott M. Grossman, Judge

_____________________________________________________________________________ United States Bankruptcy Court

ORDERED in the Southern District of Florida on June 24, 2020.

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2019.2 At the time, the Debtor designated itself as a “small business debtor,” as 

defined in the version of 11 U.S.C. § 101(51D) then in effect. While Federal Rule of 

Bankruptcy Procedure 1009 provides that “[a] voluntary petition, list, schedule, or 

statement may be amended by the debtor as a matter of course at any time before the 

case is closed,”3 the issue now before the Court is what consequences flow from the 

Debtor’s decision to amend its voluntary petition to elect to proceed under subchapter 

V more than a year into this case.4

Among the provisions of subchapter V are the requirements in 11 U.S.C. 

§ 1188(a) that the Court hold a status conference not later than 60 days after the 

entry of the order for relief, and in 11 U.S.C. § 1189(b) that the debtor must file a plan 

not later than 90 days after the order for relief. The order for relief in this case was 

entered on June 5, 2019.5 Thus, upon electing to proceed under subchapter V more 

than a year into its case, the Debtor has now put itself in default of the requirements 

of both sections 1188(a) and 1189(b).6 

2 ECF No. 1. 

3 Fed. R. Bankr. P. 1009. 

4 See, e.g., In re Moore Properties of Person County, LLC, Case No. 20-80081, 2020 WL 995544, at 

*7 n.18 (Bankr. M.D. N.C. Feb. 28, 2020) (overruling objection to debtor’s small business debtor 

designation made nine days after petition date, but observing that if “a debtor amends its election at 

a point in the case in which it creates cause to dismiss or convert the case under § 1112(b)(4)(J) or 

otherwise, a debtor’s case will be in peril.”). 

5 The commencement of a voluntary case constitutes an order for relief. 11 U.S.C. § 301(b). 

6 11 U.S.C. §§ 1188(b), 1189(b). Sections 1188 and 1189 do, however, both contain exceptions that allow 

the Court to extend those deadlines “if the need for an extension is attributable to circumstances for 

which the debtor should not justly be held accountable.” 

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Particularly with respect to the plan filing deadline, a debtor’s failure to file a 

disclosure statement or to file or confirm a plan within the time fixed by the 

Bankruptcy Code constitutes cause for dismissal of this case.7 Similarly, to confirm a 

chapter 11 plan – even one under new subchapter V – the plan must comply with the 

applicable provisions of the Bankruptcy Code, and the plan proponent must comply 

with the applicable provisions of the Bankruptcy Code.8 Now that compliance with 

both sections 1188(a) and 1189(b) is impossible, it appears that the Debtor cannot 

confirm a plan and that this case should therefore be dismissed. Accordingly, it is 

ORDERED that: 

1. The Debtor, or any other party opposing dismissal of this case, must file 

a written response to this Order by no later than 4:00 p.m. on July 10, 2020. 

2. Any party supporting dismissal of this case may file a written reply by 

no later than 4:00 p.m. on July 17, 2020. 

3. The Court will then conduct a hearing on July 28, 2020, at 1:30 p.m. 

via CourtSolutions,9 to hear oral argument on the issues raised in this Order. 

# # # 

7 11 U.S.C. § 1112(b)(4)(J). See In re Double H Transportation LLC, 614 B.R. 553, 554 (Bankr. W.D. 

Tex. Mar. 3, 2020) (striking amended petition and election of subchapter V status where election was 

made after expiration of Section 1189(b)’s plan filing deadline); see also Moore Properties, WL 995544, 

at *7 n.18. But see In re Ventura, Case No. 8-18-77193-reg, 2020 WL 1867898, at *8 (Bankr. E.D.N.Y. 

Apr. 10, 2020) (excusing debtor from complying with subchapter V deadlines that expired before the 

debtor could have elected to proceed under subchapter V). 

8 11 U.S.C. §§ 1129(a)(1), (2); 1191(a). 

9 Appearances for CourtSolutions may be arranged online at www.court-solutions.com/SignUp or by 

telephone at (917) 746-7476. Individuals not represented by counsel will be able to use the telephonic 

services FREE of charge. 

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Copies furnished to: 

 

Sonya Salkin Slott, Esq., who must serve a copy of this Order on all interested parties 

and file a certificate of service thereof. 

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