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Case 9:16-bk-05366-FMD Doc 80 Filed 08/18/16 Page 1 of 7

UNITED STATES BANKRUPTCY COURT


MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION

In re:

CAMP-RIGBY ROOFING-SHEETMETAL Jointly Administered under Case


CONTRACTORS, INC. No. 9:16-bk-5366-FMD
____________________________________
HARRY VINCENT CAMP and Case No. 9:16-bk-5367-FMD
CAROL CAMP,
Debtors.
Chapter 11
Debtors.
_________________________/
UNITED STATES TRUSTEE'S AMENDED
MOTION TO DISMISS OR CONVERT CHAPTER 11 CASES

Guy G. Gebhardt, the Acting United States Trustee for Region 21, by and

through his undersigned counsel, hereby requests that the Court dismiss or convert the

above-styled cases pursuant to 11 U.S.C. 1112(b) for the following reasons:

1. The United States Trustee previously filed an expedited motion to

dismiss or convert, stating that the Debtors had failed to provide proof of insurance on

many of their insurable properties. As noted below, many of these problems remain. In

this amended motion, the United States Trustee also advises of various other failures to

comply with requirements of the Court, the Bankruptcy Code, and United States

Trustee Guidelines.

2. The Debtors still have not provided proof of insurance on many of their

insurable properties. Specifically, the corporate Debtor failed to provide any proof of

property and casualty insurance coverage for its vehicles. It further failed to provide
Case 9:16-bk-05366-FMD Doc 80 Filed 08/18/16 Page 2 of 7

any proof of property and casualty coverage for its shop machinery, equipment, office

furniture, and computers. The individual Debtors failed to provide general liability

coverage for all three of their three parcels on SE 12th Court and casualty coverage for

two of the three parcels. 1 According to 11 U.S.C. 1112(b)(4)(C), a chapter 11 case

should be dismissed or converted if the debtor's failure to maintain appropriate insurance

... poses a risk to the estate or to the public. When a debtor owns real property with

structures, Section 1112(b)(4)(C) requires that the debtor maintain property and liability

insurance to protect the estate. 2

3. Additionally, the Debtors have failed to comply with other requirements

of the Court, the Code, and United States Trustee Guidelines. First, on June 24, 2016,

the Clerk provided a Notice of Incomplete and/or Deficient Filing and Opportunity to

Cure Deficiencies to the Debtor. In the notice, the Debtor was directed to file a

Chapter 11 Case Management Summary (Summary) within three days. The Debtor

was advised that failure to cure deficiencies could result in the dismissal of the case.

To date, the Debtor has failed to file the Summary, which is a basis for dismissal or

conversion under 11 U.S.C. 1112(b)(4)(F).

4. The Debtor failed to appear for the meeting of creditors held on July 28,

2016, pursuant to 11 U.S.C. 341. The meeting has been rescheduled for August 24,

2016. Failure to attend such a meeting is a basis for dismissal or conversion pursuant to

11 U.S.C. 1112(b)(4)(G).

1
The United States Trustee understands that the third parcel is unimproved.
2
In re Van Eck, 425 B.R. 54, 59 (Bankr. D. Conn. 2010) (Citations omitted.)
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5. Pursuant to his authority under 28 U.S.C. 586(a), the United States

Trustee provided the Debtor by electronic mail information concerning the United

States Trustee's Operating Guidelines and Reporting Requirements for Debtors in

Possession and Trustees ("Guidelines") which, in part, requires the Debtor to furnish

the United States Trustee with the following:

a. copies of the Debtors monthly operating reports, which are to be

filed with the Court;

b. proof of closing the Debtors old bank accounts (final bank statement

for all pre-petition accounts);

c. proof of establishment of Debtor-In-Possession bank accounts

(signature card) for all Debtors;

d. copy of the Debtors requested extension for 2015 federal tax returns;

e. the new tax identification number for the individual Debtors;

f. list of all checks written and other disbursements for the corporate

Debtor or on behalf of the corporate Debtor with respect to all

accounts 90 days prior to filing the petition;

g. list of all checks written and other disbursements for the account

ending 9033 owned by the individual Debtors;

h. documentation pertaining to the apparent transfer of assets by the

corporate Debtor to Camp-Rigby Management, Inc;

i. pay advices for the individual Debtors; and


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j. with respect to each trust identified in the Schedule A/B for the

individual Debtors, identification of the res and documents creating

the trust.

6. To date, the Debtor has failed to provide the United States Trustee with

the above-referenced information as required by the Guidelines. The Debtor's lack of

compliance with the Guidelines prevents the United States Trustee from properly

administering the case. The failure to provide this information is a basis for dismissal

or conversion under 11 U.S.C. 1112(b)(4)(H). 3

7. Finally, the Debtors have failed to pay the quarterly fee owed to the

United States Trustee for second quarter of 2016 as required by 28 U.S.C. 1930. The

failure to pay this fee is a basis for dismissal or conversion under 11 U.S.C.

1112(b)(4)(K). [F]ailure to pay fees or charges is an enumerated cause for conversion

or dismissal pursuant to Section 1112(b)(4)(K). 4

8. Dismissal or conversion of chapter 11 cases is governed by 11 U.S.C.

1112(b), which states in relevant part:

(1) Except as provided in paragraph (2) and subsection (c), on request of


a party in interest, and after notice and a hearing, the court shall convert
a case under this chapter to a case under chapter 7 or dismiss a case
under this chapter, whichever is in the best interests of creditors and the
estate, for cause unless the court determines that the appointment under
section 1104(a) of a trustee or an examiner is in the best interests of
creditors and the estate.
(2) The court may not convert a case under this chapter to a case under
chapter 7 or dismiss a case under this chapter if the court finds and
specifically identifies unusual circumstances establishing that converting

3
See In re Whetten, 473 B.R. 380, 382-383 (Bankr. Colo. 2012).
4
In re Sydnor, 431 B.R. 584, 597 (Bankr. D. Md. 2010).
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or dismissing the case is not in the best interests of creditors and the
estate, and the debtor or any other party in interest establishes that--
(A) there is a reasonable likelihood that a plan will be confirmed
within the timeframes established in sections 1121(e) and 1129(e) of this
title, or if such sections do not apply, within a reasonable period of time;
and
(B) the grounds for converting or dismissing the case include an
act or omission of the debtor other than under paragraph (4)(A)--
(i) for which there exists a reasonable justification for the
act or omission; and
(ii) that will be cured within a reasonable period of time
fixed by the court. . . .

(4) For purposes of this subsection, the term 'cause' includes--

...

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


the estate or to the public; . . .

(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); . . .

(K) failure to pay any fees or charges required under chapter 123
of title 28; . . . .

9. Stated more clearly: new section 1112(b) mandates, with limited

exceptions, that the court dismiss or convert a chapter 11 case where any of the acts or

omissions listed in section 1112(b)(4), or other cause, exists. Conversion or dismissal


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pursuant to 11 U.S.C. 1112(b) is mandatory on five of the specific grounds given as

examples in that section.

WHEREFORE, the United States Trustee moves this Court pursuant to 11

U.S.C. 1112(b) to either dismiss the chapter 11 case, convert the chapter 11 case to

one under chapter 7 of Title 11 or grant such other and further relief that the Court may

deem appropriate.

Respectfully submitted,
Guy G. Gebhardt
Acting United States Trustee--Region 21

By: /s/BENJAMIN E. LAMBERS


Benjamin E. Lambers
Trial Attorney
Fla. Bar No. 774197
501 E. Polk Street, Suite 1200
Tampa, FL 33602
(813)228-2000
(813)228-2303--facsimile
Ben.E.Lambers@usdoj.gov
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the United States Trustees
Motion to Dismiss or Convert has been served by electronic or United States Mail on or
before August 19, 2016:
Camp-Rigby Roofing-Sheetmetal Contractors, Inc.
1106 S.E. 12th Court
Cape Coral, FL 33990

Harry Vincent Camp and Carol Frederick Camp


1304 Canterbury Drive
Ft. Myers, FL 33901-8759

Richard A Johnston, Jr.


Johnston Law, PLLC
7370 College Parkway, Suite 207
Fort Myers, FL 33907
/s/BENJAMIN E. LAMBERS
Attorney