Federal 7th Circuit Court
Civil Court
Bankruptcy
Bankruptcy Ct. did not err in granting Trustee's motion to convert debtor's Chapter 11 bankruptcy petition into Chapter 7 proceeding, even though debtor's president, in objections to said motion, alleged that Trustee and debtor's franchisees committed fraud and further asserted that debtor would regain solvency by simply collecting fees owed to debtor by franchisees. Bankruptcy Ct. could properly conclude that president failed to offer persuasive reason to doubt Trustee's judgment that reorganization of debtor was infeasible, and that president lacked standing in Chapter 7 case to bring claims on behalf of debtor. Ct. also rejected president's argument that Bankruptcy Ct. lacked jurisdiction over debtor where contractual claims held by largest creditors were subject to arbitration.