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UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA

FT. LAUDERDALE DIVISION

www.flsb.uscourts.gov

In re: Case No.: 19-19719-JKO

 

 NEW VENTURE 777 LLC, Chapter 11

 

 Debtor

_________________________/

MOTION TO DISMISS OR CONVERT CASE

Nancy J. Gargula, United States Trustee for Region 21 (the “United States

Trustee”), pursuant to 11 U.S.C. § 1112, respectfully moves this Court to enter an order 

dismissing this case or converting this case to chapter 7, and in support thereof states as 

follows:

BACKGROUND

1. On July 22, 2019, New Venture 777 LLC (the “Debtor”) filed a joint voluntary 

petition for relief under Chapter 11 of the Bankruptcy Code. 

2. The United States Trustee has not appointed a committee of unsecured 

creditors.

3. As of the date of filing hereof, the Debtor has failed to file the monthly 

operating reports (the “MORs”) for October, November and December 2019.

4. Additionally, the Debtor owes United States Trustee fees which are now 

past due.

5. Moreover, based on review of the docket, it appears that in the more than 

six (6) months that this case has been pending in chapter 11, the Debtor has not made 

any significant progress towards reorganization.

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RELIEF REQUESTED

6. Dismissal and conversion of Chapter 11 cases is governed by Section

1112(b), which provides that a bankruptcy court shall convert or dismiss a case, whichever

is in the best interests of creditors and the estate, if the movant establishes cause.

7. The term "cause" is not defined by the Bankruptcy Code, but Section 

1112(b)(4) lists sixteen (16) examples of cause which justify dismissal or conversion:

A) substantial or continuing loss to or diminution of the estate 

and the absence of a reasonable likelihood of rehabilitation; 

(B) gross mismanagement of the estate; 

(C) failure to maintain appropriate insurance that poses a risk 

to the estate or to the public;

(D) unauthorized use of cash collateral substantially harmful 

to 1 or more creditors; 

(E) failure to comply with an order of the court; 

(F) unexcused failure to satisfy timely any filing or reporting 

requirement established by this title or by any rule applicable 

to a case under this chapter; 

(G) failure to attend the meeting of creditors convened under 

section 341(a) or an examination ordered under rule 2004 of 

the Federal Rules of Bankruptcy Procedure without good 

cause shown by the debtor; 

(H) failure timely to provide information or attend meetings 

reasonably requested by the United States trustee (or the 

bankruptcy administrator, if any); 

(I) failure timely to pay taxes owed after the date of the order 

for relief or to file tax returns due after the date of the order for 

relief; 

(J) failure to file a disclosure statement, or to file or confirm a 

plan, within the time fixed by this title or by order of the court; 

(K) failure to pay any fees or charges required under chapter 

123 of title 28; 

(L) revocation of an order of confirmation under section 1144; 

(M) inability to effectuate substantial consummation of a 

confirmed plan; 

(N) material default by the debtor with respect to a confirmed 

plan; 

(O) termination of a confirmed plan by reason of the 

occurrence of a condition specified in the plan; and 

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(P) failure of the debtor to pay any domestic support obligation 

that first becomes payable after the date of the filing of the 

petition.

See 11 U.S.C. § 1112(b)(4).

8. In this case, the record supports a finding of cause, at a minimum, under

a. §1112(b)(4)(A) where the Debtor is continuing to incur the administrative

expenses in this chapter 11 case, when there appears to be no likelihood of rehabilitation 

as evinced by (i) the Debtor’s failure to make any significant progress towards 

reorganization in over six (6) months; and (ii) the failure to file MORs for the last three (3) 

months;

b. §1112(b)(4)(B) where the Debtor is exhibiting, at a minimum, gross 

mismanagement as evinced by the Debtor’s (i) failure to file MORs for three (3) months; 

(ii) failure to pay United States Trustee fees; and (iii) failure to make any significant 

progress towards reorganization in over six (6) months; 

c. §1112(b)(4)(F) where the Debtor has failed to file MORs for three (3) 

months; and

d. §1112(b)(4)(K) where the Debtor owes United States Trustee fees that are 

past due.

9. Moreover, because no MORs have been filed for three (3) months, the 

United States Trustee is unable to tell whether there are other grounds for dismissal or 

conversion of this case.

10. Accordingly, there is cause sufficient for the Court to dismiss or convert this 

case.

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WHEREFORE, the United States Trustee respectfully requests the entry of an 

order dismissing the above-captioned chapter 11 case, or converting this case to a case

under chapter 7; and granting such other and further relief as this Court may deem just

and proper.

DATED: January 30, 2020.

Nancy J. Gargula

United States Trustee

Region 21

/s/ Zana M. Scarlett 

Zana M. Scarlett, Trial Attorney

Florida Bar No.: 626031

U.S. Trustee’s Office

51 SW 1st Ave., Room 1204

Miami, FL 33130

Phone: (305) 536-7285

 Fax: (305) 536-7360

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing Motion has been 

served on the following parties on January 30, 2020, electronically through CM/ECF, on 

parties having appeared electronically in the instant matter and that a copy hereof shall 

be served by U.S. Mail, postage prepaid, on parties not appearing electronically as listed 

below:

Stephen C Breuer stephen@moffa.law , atty_ellison@trustesolutions.com, 

allusers@moffa.law, ecf@moffa.law, stephen@ecf.courtdrive.com

Aleksander Sorsher

900 N. Federal Highway # 306 

Hallandale, FL 33309

/s/ Zana M. Scarlett 

Zana M. Scarlett, Trial Attorney

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