An order denying a creditor’s motion to convert from chapter 11 to chapter 7 is not a final order and is not appealable as of right, according to Chief District Judge Kimberly J. Mueller of Sacramento, California.
The corporate debtor had been in chapter 11 for almost two years. There were no operations and no income, but there was about $1.5 million in cash in the bank. A creditor filed a motion for conversion of the chapter 11 case to chapter 7 for “cause” under Section 1112(b)(1).
Bankruptcy Judge Christopher M. Klein denied the conversion motion without prejudice to renewal. The creditor appealed.
In her October 26 opinion, Judge Mueller dismissed the appeal for lack of appellate jurisdiction.
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