Hearing postponed about Inn bankruptcy
A hearing about whether to change The Country Inn’s bankruptcy case from a Chapter 11 to a Chapter 7 case was continued last week.
In late January, the U.S. Trustee overseeing the inn’s bankruptcy case asked the U.S. Bankruptcy Court to allow liquidation of the hotel’s assets, but the hearing on the issue was delayed last week until early April.
In Chapter 7 bankruptcies, fully secured creditors, such as banks holding mortgages, have a right to the property securing their loans.
The proceeds from whatever other property is sold by the U.S. Trustee would be divided among creditors.