New Bankruptcy Opinion Addressing Standard for Appointment of a Trustee:

Earlier this month, the Bankruptcy Appellate Panel for the Eighth Circuit filed an opinion affirming an order of the United States Bankruptcy Court for the District of North Dakota.  The debtor in an involuntary chapter 11 bankruptcy case appealed a Bankruptcy Court order appointing a trustee under section 1104 of the Bankruptcy Code.  The Eighth Circuit Bankruptcy Appellate Panel affirmed the Bankruptcy Court's order, finding that "since the record supports a finding for cause under section 1104(a)(1), and that the appointment of a trustee is in the interests of creditors and the estate under section 1104(a)(2), the appointment of the trustee was mandatory."

The opinion is embedded after the jump.

Case Details:

• Bankruptcy Case: In re Keeley and Grabanski Land Partnership
• Appeal: Keeley and Grabanski Land Partnership v. John Keeley, Dawn Keeley and Choice Financial Group
• Appeal Case No.: 11-6020
• Appellate Judges: Schermer, Federman and Nail

Keeley & Grabanski Land P'ship. v. Keeley, et al.