Opinion ID: 762144
Heading Depth: 3
Heading Rank: 5

Heading: 1991: The trustee liquidates the Campgrounds' assets

Text: 23 In February 1991, the trustee concluded that it could no longer keep the Campgrounds in operation. Because attempts to recover wrongfully diverted assets proved unsuccessful, the trustee, recognizing that the Campgrounds lacked sufficient funds to continue, moved to liquidate. The Reorganization Plans and Disclosure Statements (the Disclosures) mailed to creditors (including Plaintiffs) indicated that the Campgrounds' contractual obligations in the Agreements For Deed would not be honored. The Disclosures stated that an appraisal of the Campgrounds' operations had concluded that the only economically feasible plan would be to liquidate the assets to eliminate the Campgrounds' high debt obligations by selling the property to a new operator. A group of affiliated companies was then found to purchase the assets. 24 In April 1991, the plans were confirmed and the Campgrounds discharged. In May, June and July of 1993, Plaintiffs filed the three class actions now on appeal.