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Case 25-23251-MEH Doc 50 Filed 01/07/26 Entered 01/07/26 15:54:27 Desc Main
Document Page 12 of 12
In re Seaview Apartments LLC
Case No. 25-23251 (MEH)
resolution of the settlement with the Property’s former tenants. The Debtor’s filing serves neither
a valid bankruptcy purpose to preserve or maximize the value of its estate, nor is the filing any
more than a tactical litigation advantage. See In re 15375 Mem’l Corp., 589 F.3d at 619.
Therefore, the Court will dismiss the Debtor’s bankruptcy petition for lack of good faith.
C. Debtor’s Chapter 11 Petition Must Be Dismissed for Additional “Cause”
Under 11 U.S.C. §§ 1112(b)(4)(A) and (B)
Section 1112(b)(4)(A), the substantial or continuing loss to or diminution of the estate and
the absence of a reasonable likelihood of rehabilitation, and Section 1112(b)(4)(B), gross
mismanagement of the estate, as argued by FourLeaf, constitute additional bases for “cause” upon
which the Court will base dismissal of the Debtor’s bankruptcy petition. The Debtor has presented
no evidence of cash flow or source of income to evidence rehabilitation. The Debtor has
established only that its objective is to remarket a condemned Property that has already been
scheduled for a court-approved closing for sale after a full and fair hearing approving such sale,
and not in fact to move this case along in a meaningful way for the benefit of the estate.
II. CONCLUSION
For the foregoing reasons, FourLeaf’s Motion to Dismiss Pursuant to 11 U.S.C. § 1112(b),
or in the Alternative, for Relief from the Automatic Stay Pursuant to 11 U.S.C. § 362(d), (Doc.
No. 26), is GRANTED. The Debtor’s chapter 11 bankruptcy petition is DISMISSED.
FourLeaf’s Motion for Adequate Protection to Lender Pursuant to 11 U.S.C. § 543(d) and for
related relief, (Doc. No. 18), is consequently DENIED as moot.
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