Matter of Coral Air, Inc.

MEMORANDUM OPINION

DAVID V. O’BRIEN, District Judge.

Several creditors of Coral Air, Inc. (“Coral Air”), who were included in a plan of reorganization approved by the Bankruptcy Court, filed motions under 11 U.S.C. § 1112(b)(7) and (8) to convert this matter from a reorganization under 11 U.S.C. Chapter 11 (“the Bankruptcy Act”) to a liquidation under Chapter 7 of the same act. They assert failure of Coral Air and others to meet the terms and conditions of the order approving the plan, and they claim a material default by Coral Air in meeting its obligations under the plan.

The Court will hold…