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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 4 of 12
In re Seaview Apartments LLC
Case No. 25-23251 (MEH)
dismissal of the case. The Court took the matters under advisement at the conclusion of the
hearing.
Having carefully considered the parties’ submissions and arguments in support of and in
opposition to FourLeaf’s Motions, the Court now renders the following decision. In doing so, the
Court assumes the parties’ familiarity with the history and circumstances leading up to the
Debtor’s bankruptcy filing—including the history and circumstances of the Property, and the
underlying receivership proceeding and separate litigation by the Property’s former tenants against
the Debtor and its sole owner, Benjamin Weinstein (“Mr. Weinstein”), in the Newport News
Circuit Court in Virginia (the “Circuit Court”). The Court therefore dispenses with a detailed
recitation of the facts beyond addressing those necessary to resolve the Motions.
I. DISCUSSION
The Court turns first to FourLeaf’s motion to dismiss the Debtor’s bankruptcy case
pursuant to Section 1112(b) as a “bad faith” filing, as well as pursuant to Sections 1112(b)(4)(A)
and (B) for substantial or continuing loss to or diminution of the estate, the absence of a reasonable
likelihood of rehabilitation, and gross mismanagement. (See FourLeaf’s Br. at 7-12, Doc. No. 26-
20). FourLeaf’s motion also seeks, in the alternative, relief from the automatic stay with respect
to the Property pursuant to Sections 362(d)(1) and (2). (See id. at 12).
A. 11 U.S.C. 1112(b)
Section 1112(b) of the Bankruptcy Code provides that on request of a party in interest, and
after notice and a hearing, a bankruptcy court shall convert or dismiss a debtor’s chapter 11 case
“for cause.” 11 U.S.C. § 1112(b).
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